Document of'

The World Bank

FOR OFFICIAL USE ONLY

aeport No. 9185-BU

STAFF APPRAISAL REPORT

REPUBLIC OF BURUNDI

WATER SUPPLY SECTOR PROJECT

MAY 31, 1991

Infrastructure Operations DivisionSouth-Central and Indian Ocean DepartmentAfrica Region

Tllis document bas a restdcted disiribution ad may be used by recipients onisy la the performance ofthelr offlîcia duties. Its contents may not otherwise be diselosed without Worl lBank authmizaton.

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CURRENCY EOUIVALENT

Currency Unit = Burundi Franc (FBu)US$ 1.00 = FBu 160 (as of January 1991)

WEIGHTS AND MEASUIRES

Metric British/US Eguivalents

1 meter (m) = 3.3 feet1 hectare (ha) - 2.47 acres1 kilomneter (km) = 0.62 rnile1 square kilometer (km2) = 0.39 square mile (sq.m.)1 kilogram (kg) = 2.2 pounds (lb.)1 liter (1) = 0.26 US gallon (gai.)1 metric ton (m ton) -2,204 lb.

GLOSSARY OF ABBREVIATIONS ANI) ACRONYMS

AGCD - Administration Générale pour la Coopération et le Développement (BelgiumCooperation)

AfDB - African Development BankBRB - Banque de la République du BurundiCCCE - Caisse Centrale de Coopération EconomiqueCOOPECs - Coopératives d'Epargne et de CréditCURDES - Centre Universitaire de Recherche sur le Développement Economnique et SocialDGHER - Direction Générale de l'Hydraulique et des Energies RuralesDHA - Direction de l'Hydraulique et de l'AssainissementDIEPA - Décennie Internationale de l'Eau Potable et de l'AssainissementEDF - European Development FundGTZ - Deutsche Gesellschaft flr Technische ZusammenarbeitKfW - Kreditanstalt fûr Wiederaufbaulcd - Liter per capita per dayMEM - Ministry of Energy and MinesMDR - Ministry of Rural DevelopmentNGO - Non-governmental OrganizationPAEMR - Projet d'Adduction d'Eau en Milieu RuralPEA - Projet Eau et AssainissementPEP - Public Expenditure ProgramREGIDESO - National Water and Electricity AuthoritySETEMU - Services Techniques MunicipauxUNICEF - United Nations Children's FundWHO - World Health Organization

GOVERNMENT OF BURUNDl FISCAL YEAR

January l to December 31

REPUBLIC OFBURUNDIFOR OFFICIAL USE ONLY

WATER SUPKPLY SECTO! RQJIE

STAFF APPRAISAL RtEP-ORT

Table of Contents

Pae No.

CREDIT AND PROJECT SUMMARY ............................... (iv)

1. THE WATER SUPPLY AND SANITATION SECTOR

A. Geographic and Economic Setting ...... ......... ................. IPopulation ............................... 1Econonic Situation ............................ 1Local Organization ............................ 2

B. The Water Supply and Sanitation Sector ............................ 2Water Resources ............................ 2Sector Organization ............................ 2Levels of Services ............................ 3

C. Previous Bank Involvement ............................ 4

Hl. THE WATER SUPPLY SECTOR POLICY

Sector Objectives ................................. 6Cost Recovery ................. 6Responsibilities between Urban and Rural Subsos ..........................secos 6Institutional Arrangements for the Rund Sub sector ....................... 7Sector Development Program ................................. 8Sector Corstraints ................................. 8Rationale for Bank Participation ................................... 9

DII. THE PRO.lECT

Genesis ................................. 10Project Objectives ................................. 10Project Description ................................. 10Proje-t Cost ................................. 12Project Financing Plan . . . . . . . . . . . . . ......................... . 13Implementation ................................. 14Training and Sensitization ...................................... 14Procurement ................................. 15Disbursement ................................. 16

This report is based on the findings of a Bank appraisal ws-asion which visited Burundi in October1990. The mission comprised Messrs. J.F.Dreau (municipal engineer, mission leader), R.Senou(financial analyst), A.Wildt (sanitary engineer) and G.Tenaille (consultant). Messr S. Calegari (Sr.sanitary engineer) was the lead adviser for this operation. Mrs. A. Paz assisted in the preparation ofthe repoit. Messrs. M. Blanc snd F. Aguirre-Sacasa are the managing division chief and thedepartment director respectively for the operation.

This document has a restricted distribution and may be uscd by recipients only in tbh performanceof their cmcial duties. Its contents may not otherwise be disclosed without Worid Ba.ak authorization.

Page No.

IV. THE IMPLEMENTIeG AGENCY

DGHER ................................ 18Organization and Management ............................... 18Staffing and Personnel ................ 18Accounting and Auditing ................ 19

V. FINANCIAL ANALYSIS

A. Rural Sub sector .................................... 20Introduction .................................... 20Demand Projections .................................... 20Operation and Maintenance, Renewal Costs ........................... 20Water revenues, Water Tariff and Annual Fee ......................... 20Affordability .................................... 21

B. Urban Sub sector - REGIDESO .................................. 21Past Financial Performance .................................... 21Improvements of Present Situation . ............................... 21Financial Restructuring ........................... 22Arrears and Collection ........................... 22Water Tariffs ........................... 22Performance Contract ........................... 22Projected Financial Position .................................... 23

VI. ECONOMIC AND SOCIAL ANALYSIS

Project Benefits ................................ 24Project Justification ................................ 24Least Cost Solution ................................ 24Environmental Impact ...... ....... .......................... 24Women's Role ............................................. 25Impact on Poverty Group ........................ 25Project Risks ........................ 25

VII. AGREEMENTS REACHED AND RECOMMENDATIONS

Agreements reached at Negotiations ......... ............... 26Conditions of Credit Effectiveness ........................ 27Conditions of Disbursement ........................ 27Recommendations ........................ 27

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LIST 0F

1. Sector Policy Letter ................... .... .... .... ... .... ... . 282. Africa Region - Water Supply and Sanitntion Indicators .. ................... 343. Data on wvater-bome diseases ...................................... 354. Present situation of the rural water supply sub setor ....................... 365. Detailed Project Description ...................................... 376. Implementation schedule ......................................... 417. Detailed Cost Estimates by year, component and type of expendites .... ......... 428. Characteristics of the systems ..................................... 469. Projected tariff and annual fee level .................................. 47

10. Comnunal Water Utilities - Income statoments ........................... 48Il. REGIDESO - Financial projections .................................. 5412. Organization chart of DGHER ..................................... 5813. Estimated schedule of dishursements ................................. 5914. Termis of reference .......................................... 6015. Job descriptions ....................................... 6416. Supervision plan ....................................... 6617. Progress reporting requiremets . ................................... 6818. Selected documents and data available in Project file ....................... 70

LMT 0E TABLES

2.1 Proposed coverage of water and sanition servics ....... .................. 63.1 Rural water systems included in the project ............................. 113.2 Project cost summary by component . ................................. 123.3 Project cost summary by type of expenditures ........................... 133.4 Project financing plan ........................................ 133.5 Procurement arrangements ......................... 163.6 Disbursements under IDA credit ......................... 17

LM OFMA

IBRT) No 22791 Water Supply Sector Project.IBRD No 23088 Riparianh concerned with the Project

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BURUNDI

WATER SPPILY SECTOR QB1RQIE

Credit and Project Summuary

Borrower: Republic of Burundi

Beneficiaries: Ministry of Rural Development (MDR) and Ministry of Energy and Mines (MEM)

Amount: SDR 24.2 million (US$32.7 million)

Terms: Standard IDA

Cograncing: Belgium and Gernany (AGCD, KfW)

Proiect objectives:

The nain objectives of the project would be to: (a) mprove the quality and quantity of potable waterprovided to the rual population; (b) increase the local population's sense of responsibility fur maintainingits water supply facilities; (c) help the government and REGIDESO, the urban utility company, developand implement appropriate institutional and financial arrangements in water supply sector; (d) extend thepricing policy initiated under the rural water supply project to the entire country; (e) coordinate donoractivity in the rural water supply sector; and (f) help the government prepare and monitor a publicexpenditure program (PEP) for the sector.

Proiect Descrintion:

The project would include the following components:

(a) construction of rural water supply systems in 9 provinces split in two stages: stage 1 - provinces ofKayanza, Ngozi, Karuzi and Muyinga; stage 2 - provinces of Gitega, Muramvya, Cibitoke, Bubanza,Makamba;

(b) development and protection of about 3,000 springs; and

(c) capacity building in the Department or Rural Water Resources and Electrification (DC-l! ER), withinthe MRD, through the provision of expertise, equipment and training, in the conmnunes and ,. communalwater utilities tbrough the provision of training and sensitization of population, and in REGIDESO throughthe provision of studies.

Proiect Benefits:

Tbe proposed project would improve public heulth tbrough provision of safe water supply in rural areas.Another important benefit would be decentralization and development of communal responsibilities forinfrastructures which directly serve tie population. Institutional strengthiening and cost recovery wouldprovide the basis for future expansion of raml water supply systems and would improve the financialsituation of REGIOESO.

Though experience under the second project demonsates that even the poorest communes are ready to payfor wator, there is the risk that cost recovery and beneficiary participation in the maintenar"e of facilities

would be less than expected. This risk will b. moimized by the planned campaigpb for sensitizingpopulation on benofits provided by the use of safe drinking water.

ioect Cost:

The total cost of the project is estimat.d at USS 54.7 hiilion equivalent, with foreign costs of about US$38.2 million which represent 70 percent. The detailed cost estimates is sbown in table below.

Project Cs Eimates(US$ million)

Foreign asLocal Foreign Total X of iotat

A. Rurat _.ter smipty systeProvinces of:

(1) Ngozi and Nuyirga 1.4 3.8 5.2 73.3%(2) Karuzi end Kayanza 3.6 8.1 11.7 69.6X(3) Citega and Murawya 1.8 5.9 7.7 76.4%<4) Cibitoke, Bubanza and lakanba 1.9 6.7 8.6 77.8%

8. Springs 0.6 1.1 1.7 62.5%

C. Institution buitdhng

Cl) Project Unit (PAER) 1.7 3.0 4.7 63.7%<2) OGHER 0.0 1.0 1.0 95.7%(3) Conal Water Utilitii-, 0.2 0.0 0.2 0.0%(4) REGIDESO atudies 0.0 0.3 0.3 100.0%

Refinoe,ino of PPf 0.0 1.0 1.0 100.0X

Totat Base Costa 11.2 30.8 42.0 73.42

Physical Contingencies 1.1 2.3 3.4 68.6XFrice Contingencies 4.1 5.1 9.2 55.0%

TOTAL 16.4 38.3 54.7 70.02

Prices as of June 1990.Base costs lnclude taxes on locally procured goods estimated atUSS0.2 million equivalent.

Financin -Plan:

Financing Plan(US$ million)

PercentLocal Foreign Totat of Total

IDA Credit 8.8 23.9 32.7 59.8KffW Grant 1.4 4.8 6.2 11.3AGCD Grant 3.0 9.6 12.6 23.0

Sub total 13.2 38.3 51.5 94.1

Goverrunent and Caes 3.2 0.0 3.2 5.9

TOTAL 16.4 38.3 54.7 100.0

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BURUNDI

WAT*ER ST!PPY SECTOR PROJECT

1. THE WATER SUPPLY AND SANITATION SECTOR

A. Geographic and Economic Setting

1.01 Burundi is a small landlocked country on Lake Tanganyika situated in Eastem Africa between Rwanda,Zaire and Tanzania, about 1,400 km from the Indian Ocean. The country covers 27,835 knm, including the 2,800knm2 that make up its share of Lake Tanganyika. There are three principal geographic zones: (a) the Imbo coastalplain along the eastern shore of Lake Tanganyika and the Ruzizi River Valley north of the lake, where the climateis tropical with an altitude of 800 m; (b) the high, cool, central plateau region that contains the Zaire-Nile divide,between 1500 and 2000 m, where most of the population lives; and (c) the North-eastern and South-eastem (MossoPlain) lowlands extending from the central plateau to the Rwandan and Tanzanian borders. Average temperaturevaries from 15 to 25 degrees C throughout the year.

Population

1.02 With a population of about 5.25 million growing at the high rate of 3 percent a year, Burundi is thesecond most densely populaied country in Africa (210 inhabitants per square km of land). Life expectancy is 48years, and child mortality rate is i 19 per thousand. About 93 percent of the population lives in rural areas as smallfarmers who depend mainly on subsistence agriculture and on one main cash crop, coffee, which provides the najorsource of the country foreign exchange. Bujumbura, with a population of about 250,000, is the only city inBurundi.

Ecornomie Situation

1.03 GDP per capita, estimated at about US$230 (1989), ranks among the lowest of the continent. GDPgrowth has averaged 6.2 percent in real terms from 1985 to 1987, but was 5.2 percent in 1988 and only 1.5 percentin 1989. The country has limited natural resources other than a relatively fertile agricultural land. Agriculture isthe predominant activity, contributing more than half of GDP, 93 percent of employment and 88 percent of exportearnings. Bumndi is one of the few African countries that are self-sufficient in food. The most important exportcrop is coffee, which accounts for about 80 percent of export earnings. The secondary sector is small, accountingfor about 14 percent of GDP and 8 percent of exports.

1.04 After a period of relatively good growth, partly due to the coffee boom in the mid-1970s and increasedforeign aid, Burundi faced serious economic and financial difficulties in the early 1980s. With the decline in coffeeprices and a rise in oil prices, the terns of trade deteriorated by 45 percent between 1978 and 1981, weakening thebalance of payments and generating large budget deficits. The government imposed import restrictions and tightenedforeign exchange and price controls to hold down the increasing deficit in the balance of payments. Th. resultingeconomic slowdown highlighted Burundi's major structural constraints: its dependence on coffee revenues, weak>rivate sector and lack of incentives for a sustained growth of agriculture and industry.

1.05 In 1986, the government undertook a major adjustment program under the first SAL, with theobjectives of restoring financial stability and initiating structural changes to increase reliance on market forces. Thenew government that took office in September 1987 has committed itself to pursue and strengthen the adjustmentprogram under SAL 11, which became effective in November 1988. It has and will continue to address structuralissues by: (i) improving macro economic management, (ii) stimulating exports, (iii) promoting private sectordevelopment, (iv) reforming the public enterprise sector, and (v) improving public expetiditure management. Inaddition new measures are aimed at: increasing the efficiency of the financial sector, liberalizing the labor marketand alleviating poverty.

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1.06 Under th. first phase of the ajusmet progrm, the govemneat implem.ntcd a strict budgetary policyincluding a serong reduction of public exponditures. Public investmet was reduced to conform to the new tightmacroeconomic and financial policy. A throyear rolling public expenditurs program (PEP) is now being preparedto 'erve as the basis for a unified systuen of bdget preparation. This PEP in expected to lead to more efficientresource maocation and give priority to the mainenance of inftucture rather than to new capital expenditures.

&a]Omanizado

1.07 In 1982 the number of provinces was increas d ftom 8 to 15, and the number of districts, or*communes from 79 to 114 1/. Tho communes are dministralively divided irto 2,466 'hills', The cemamuneis headed by a communal administrator. He is appointed by the Ministry of the Interior und reports to the govemorof the province. Each cont-june has an accountant and many of them have a water service attendant who isresponsible for existing wate" supply systems. Most provmces have a smal urban center providing servie3 tosurrounding nral ancas ZI.

1.08 A reorganization of local finaucing was undertaken in January 1984, principally to increase localinvolvement and responsibility. New taxes were established, to be collected by the communes. However thecommnunes remain financially weak, with revenue averaging FBu 150 per capita in 1987. Tbe second urbandevelopment project (Cr.No 1968-BU) initiated a study of communal resources with the objective of strengtheningthe financial viability of the communes, urban as well as rural.

B. The Water Supply ad Sanitation Sector

Water Resouroes

1.09 Burundi has good rainfall, with 800 Co 2,000 mm a year in two rainy sessons. Rainfall varies fromless dman 900 mm in the Imbo Plain, to 900-1,200 mm in the eastern plains, about 1,200 m in the central plateauand 1,600-2,000 mm along the Zuie-Nile crest. lierefore, it has ad',quate water potential for community watersupplies. Because of its geology und climate, there are many springs and surface waters, principally in the centralplateau. In the Ruzizi valley and the eastern lowlands, groundwater is the only source available. However, thequality of the water provided by many prings, which are not protected, as v._ as by the streams and marshlandsis doubtful or poor. The incidence of water-borne diseases is high and accounts for more than 70 percent of allendemic diseases (see Annex 3).

Sector Ormnizaion

1.10 A National Commission for Water (Commission Nationale Permanente des Eaux) was established onMarch 15, 1976 under the chairmanship of the minister of agriculture. When the Ministry of Energy and Mines(MEM) was created in October 1987, with responsibility for water, a new National Commission for Water andEnergy was established Ji. This commission is chaired by the minister of energy and mines. Th. main objectivesof this commission are to coordinate the development of the water and energy sectors, define the responsibilitiesof the agencies involved and protect waler and energy resources. This commission reports to the prime ministerand minister of planning.

1J Decree-Law No. 1/29, September 24, 1982.

2/ By Decree No. 100/'3, March 11, 1986, the govemment classified 23 towns as urban centers, inaddition to th. capita city, Bujumbura. Ib list includes the chief towns of the 15 provinces, plusRumonge, Nyanza-Lac, Rugonibo, Matana, Bubiga, Ijenda, Mutabo, Bulcirazi and Mwaro.

I/ Decree No.100/126, December 11, 1989.

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1.11 Water supply in urban centors 8 naed by REGIDESO, a govemnment-owned company that is alsoresponsible for elerti power in the country. REGIDIESO was establisehod ifn 1968, under the supervision of theMinistry of Energy and Mines 4I. It lB supported by soveval donots: the African Development Bank (AfDB),Gernan Cooperation (KfW and GTZ), the French Caisse Centrale de Cooperation Econonique* (CCCE), andIDA. Originally REGIDESO had responsibility for water supply tbzoughout the country, in rual as well as inurban arens.

1.12 In Febnuy 1979, resp asibility for water supply in rual area was trmsferred to the Department ofRural Water Resources and Blectrificatlon (DHER) Il witbin the Ministry of Rural Development (MDR). Thedepartment was in charge of the planning, design, constrction (mainly by forme account), operation andmaintenance (O.& M.) of all mral electricity mnd water 'upply schemnes. However because of a shortage of fundsand technical staff and a lack of proper ins ional arrangements most of the rutal water supply systems were notmasntained. By 1984, about a third of exisung rurl water systems were out of service. Under the rural watersupply project (Credit 1625-DU), the govemmont d.cided to give Wo local communities under the authority of theconmnunes, thi responsibility for opetation and maintenance of water supply systems and introduce cost recoverymeasures. In 1988, the Department of Rural Water Resources and Electrification was upgraded into the GeneralDirectorate for Rural Water and Energy (DGHER), with two departments, one for energy, and one for water(Département de l'Hydraulique et de l'Assainissement, DHA) f/.

1.13 Until 1983, sanitation in Bujumbura was handled, by REGIDESO. In May 1983, ihe goveramenttransferred this responsibility to a new agency, SETEMU (Services Techniques Municipaux), with the objective ofextending its activities to all urban centers. lI 1989 as a condition of the second urban development project,SETEMU became an autonomous agency under the responsibility of the Bujumbura Municipality. Sanitation in ruralareas is hasdled by DHA.

Levels of Service

1.14 Cormpared with other Sub Saharau African countries, the levels of service are slightly higher than theaverage for water supply, particularly in-the urban areas, sad radier lower than average for sanitation for both urbanand rura ames (see annex 2)

1.15 Water Su_ply. REGIDESO operates 28 water systems (778.5 krm. of pipes), with 354 standpipes andabout 12,350 house connections. Water is supplied to about 92 percent of the urban population, 25 percent throughprivate connections and 67 percent dirough standpipes.

1.16 Buijumbura receives about 50,000 m3 a day, 7 percent from Lake Tanganyika, 19 prercent from theNtahangwa River, and 7 percent from three springs located in the hills above the city. T'e city hvl about 9,800pn-:.aite connections (17 percent of the population) and 210 standpipes, of which only 120 are workir,g. This resultsfrom REGIDESO systematically cutting off water in standpipes which have not been maintained rather thanmaintaining them, because standpipes water bills are not paid by the municipality. 'Me municipality and

REGIDESO have recently agreed to request from standpipes users the payment of an annual fee which would enablethe muuicipality to clear up the situation, Instructions for standpipes management and payment of water by usersin centers operatad by REGIDESO, are under preparation and would be sent to local authorities by June 1991(para.7.01 (a». This issue ie also being addressed under the second urban project (credit 1968-BU) by strengtheningmunicipal revenues and therefore the ability of the municipality to pay its water bills.

I/ Decree-Law No. 1/196, October 2, 1968.

1/ Ebliued by Decree No. 100/18, February 2, 1979.

f/ Decree No. 100/209, December 22, 1988.

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1.17 The level of service in rural areas increased from 22 percent in 1982 to 48 percent by the end of 1990.Coverage varies from 25 perçent of the population in Muyinga province, up to 81 percent in Ruyigi provizace.About 17 percent of the rural population is served through piped systems (16.5 percent through standpipes and 0.5percent through house connections), 31 percent through developed springs, and 0.3 percent through wells.

1.18 liiere are 338 rural water supply systems with 2,343 kn of pipes, of which 23 with pumping stanon,equipped with 2,765 standpipes, and about 2,000 house connections. Each standpipe serves about 220 inhabitante.There are about 1i1,000 developed springs. Prom 1979 to 1989 UNICEF developed 7,625 springs. In addition, 960springs were developed under the supervision of the NGO Action Aid, and 2,390 by other projects. Each springserves 132 people on average and sometimes supplies schools und dispensaries. Annex 4 shows the level of servicefor each province. Rural residents without service rely on undeveloped springs and polluted streatns or ponds,which are generally located at sonie distance from their home.

1.19 Per capita consumption is low at about 8 liters per day (led) compared to 30 lcd recommended by theWorld Health Organization (WHO). The standard consumption used for new projects is 20 led for standpipes and100 Icd for house connections.

1.20 Sanitation. In Bujumbura about 11 percent of the population is served by three sewerage systems,covering the city center, Ngagara and Mutanga. Sewage is discharged into the Ntahangwa River or directly intoLalce Tanganyika without treatment. The Mutanga system is equipped with a treatment plant, but it does not work.About 9 percent of the population is served through septic tanks and 80 percent through pit latrines, often used byseveral farnilies.

1.21 A study financed by AfDB was carried out from 1982 to 1986 to prepare a sanitation project forBujumbura. The total cost of this proposed sanitation project would be about US$30 million. AfDB, Kreditanstaltfuer Wiederaufbau (KfW) are interested in financing the project, but no formal decision has yet been takea, in viewof the uncertainty about the origin of future resources required to cover operating and maintenance costs.

1.22 The secondary towns have no sewerage system; they rely on septic tanks (20 percent) and pit latrines(80 percent).

1.23 Ln rumral areas 30 percent of the rugos' (family farnis) have a traditional pit latrine that does not moetminimum sanitary conditions. The rest of the rural population lacks formal waste disposal facilities. Several publicand private improved pit latrine systems have been tested, but proved too costly to install. Although residents couldbuild the latrines, they have to buy the concrete floor, which costs about FBu 20,000. The present policy is to givepriority to equipment for schools and dispensaries. About 200 schools (17 percent) have been provided with goodsanitary facilities, 150 of which were financed under the IDA supported education sector development project.

C. Previous Bank Involvelment

1.24 In 1966 the Bank financed a water supply project for Bujumbura (Cr. 85-BU). REGIDESO was createdunder this project, which was completed in 1972. A project performance audit report (PPAR No 0792) wasprepared in June 1975.

1.25 A second project was approved in 1986 (Cr. 1625-BU) to improve water supply facilities in rural areas.The credit will be closed in December 1991. This project included the following components: (a) rehabilitation andextension of 33 rural water supply systems; (b) strengthening the DHER snd improving its effectiveness throughthe provision of technical aseistance and equipment; (c) training for DHER's staff, communal administrators,accountants, and water supply attendants; and (d) feasibility studies for rural water supplies in the provinces ofNgozi, Kayanza, Kanzi snd Muyinga (to be developed under the proposed project). The project was designed tosupport the transfer of responsibility from DGHER to communes for the O.& M. of water systems and introducea cost recovery mechanism.

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1.26 Due to an efficient project unit, the project was implemented on time and civil works were completedin Aigust 1990, despite a delay, due to a government decision in 1988 that water charges necessary to cover O.&M. expenditures would not be paid by stanpipes usera, but rather by the communes. However this decision couldnot be implemented for lack of resources and the govemment eventually agreed to implement the original costrecovery policy gradually. In 1989 a test was under'aken in 3 communes in which revenue collection rmie rangedfrom 40 to 85 percent. In mid 1990, the cost recovery policy was extended to 26 communes where the systemswere operational. For the first year of implementation of the policy, the results are -elatively good and encouraging,with an average coverage of 35 percent and one fifth of communes over 60 percent. The design of the proposedproject is based on results and lessons learnt through this ongoing project, namely for decentralization ofresponsibilities, organization of the local level, cost recovery policy and implementation arrangements.

1.27 lI 1985 IDA provided funds to expand the power transmission and distribution system of REGIDESO(Cr. 1593-BU). Besides electricity physical components the p:. .ct included the construction of a training centerto improve performance of REGIDESO' staff. Construction of this training center is completed.

1.28 In April 1991 the Energy Sector Rehabilitation Project was approved. This project has been designedto strengthen the institutional capacity of DGHER and REGIDESO in the power sector.

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lTa, WATER SUPmY SECTOIR OLICY

2.01 A draft letr of sectoral policy was prepared by the govermment and discussed with the appraisalmission (see annex 1). This draft was reviewed by the national commission for water, sent to the Bank beforenegotiations and was discussed during negotiations. The letter was signed as a condition of Board presentation ofthe proposed creit. The proposals included in tbis letter provide a sound basis for the development of the sector.

SjççtQr Obied&ËM

2.02 In January 1982 at the first national workshop in the framework of the water supply and sanitationdecade, targets and associated investment costs were set as follows:

Table Z.1 Proposed coverage of water and sanitation services

1982 1987 1992 Investment a/

.Water 90% 95% 98% US$65 million.Sanitation 40% 65% 80% US$53 million

Rul At.Mater 22% 40% 50% US$21 million.Sanitation 30% 60% 85% US$20 million

a/ in 1981 prices.

2.03 The objectives for sanitation are far from being met as domestic and foreign resources were notsufficient, and because cost recovery measures were not implemented. For water supply the level of service couldreach 50 percent by 1992 in nral areas, and 94 percent (instead of 98 percent) in urban areas.

2.04 In 1988 the govemment set revised water sector objectives calling for universal access to potable waterby 2000. A level of service of 98 perent in urban centers and 75 percent in rual areas, at a cost of US$80million, would be & reasonable objective, considering the availability of foreign and local fund's, and the absorptivecapacity of the executing agencies. For urban centers, this objective has been accepted by the govenmment whichhas also agreed to deliver the service to the rural sector to the extend allowed by local water resourtes availabilityand topographical conditions. These objectives, expressed in the sector policy letter, are consistent with thedevelopment program detailed below (aa 2.14, 2.15 and 2.17). mhe government has also agreed to 70 percentcoverage by sanitation services in Bujumbura and 60% in secondary centers and in urban areas.

Cost Rewcvr

2.05 lhe letter of sectomal policy specifies that the cost of water supply and sanitation services would befuUy recovered in urban centers. Tariffs would be reviewed annually to cover actual cost of service. The objectivewould be to reach the long-term marginal cost. In rural areas the government would finance construction cost(including related debt service) and beneficiaries would cover O.& M. and renewal costs. This cost recovery policywould be reviewed in the medium term, as the economic situation of the rural population is expected to improve.

Remksbilities between Urban and Rural Sub sectors

2.06 When DHER was established in 1979, the respective responsibilities of REGIDESO and DGHER werenot clearly defined, particularly in the rural areas surrounding the centers operated by REGIDESO. This wascorrected in 1986 when REGIDESO's statute was amended limiting its responsibility to Bujumbura and 23 urban

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centers ?/. A 1987 study covering the financial and institutional aspects of water supply mn- sanitatt endorsedlimiting REGIDESO's responsibility to these 23 urban centers I/. Although the findings were approved by thesteering committee, no change has occurred and despite this clarification REGIDESO continues to operate 28 centersand is implementing a rural water supply project, financed by KfW, for 5 new centers. Contrary te govermmentpolicy REGIDESO's standpipe users do not pay for water; the commune is billed. This would be corrected underthe proposed projecv, and the transfer from REGIDESO to the communes of water systems concerned would becompleted prior to any disbursement for pipes acquisition for the provinces of Karuzi and Kayanza (para.7.03).

2.07 If technical support from REGIDESO is necessary to assure adequate O.& M. of rural systems to betransferred, the communes could contract with REGIDESO for the services required. The communes would payREGIDESO, and would be responsible for collecting service charges from the users. The communes would alsobe free to contract with a private company for the same services.

Institutional Arrangements for the Rural Sub sector

2.08 On August 16, 1990 the Council of Ministers agreed on the organization of the rural water supply subsector and asked the Ministry of Interior and MDR to prepare instructions, to be sent to all province goiernors andcommunal ad ministrators. This statement based on the experience of the ongoing project, transfers responsibilitiesto the local level and is in line with the sector policy letter and has been sent to local authorities in December 1990.During negotiations, assurance was obtained that it would be formdalized in December 1993, taking into account theexperience gained after three years of implementation (para.7.01 (b)).

2.09 Thi communes are responsible for potable water supply and own all water facilities, except thoseoperated by REGIDESO. After the construction of a new system, the facilities are handed over to the communes,which are responsible for O.& M. and renewal of the facilities thereafRer.

2.10 The O.& M. of all water systems in the commune, piped systems as well as springs or wells, wouldbe the responsibility of a communal water utility ('régie communale de l'eau"). During negotiations, assurance wasootained that the utility would be established before starting works in the concemed commune (para.7.01 (c». T'eutility would be managed by a communal water board, established in the following manner

(a) The consumers of a water point, standpipe, spring, or well would elect a person who would be in chargeof the care and maintenance of the facility;

(b) The group of persons so selected would elect representatives to serve on the commune users committee;(d) The users committee would meet annually -or as appropriate- to elect a communal water board, composed

of ten to twelve representatives, including its chairman and its treasurer.

2.11 The water board would have full responsibility for O.& M. of all the water facilities in the commune.The board would present the budget at the annual moeting, outlining expenditures for an adequate O.& M. andconstruction. The board would also set the annual user charges. These decisions would be approved by thecommunal administrator. If the water board did not fulfill its stated functions, the communal administrator wouldtake the initiative for the management of the systems.

2.12 At each water point, an elected agent would collect the fees, delivering them to threasurer of thewater board, who would deposit the funds on a bank accouat (or other financial institution) opened in the name ofthe communal water utility. 'Me chairman and the treasurer would have joint responsibility for this account. 'Mewater board would pay the salaries of the water attendants and other staff and would finance all O.& M. costs and

2/ Decree No. 100/12, March 11, 1986.

jI This study financed by AfDB, was carried rut with REGIDESO as executing agency. A steeringcommittee proposed by IDA and in which DHER and other concemed agencies were represented wasestablished.

replacement of assets. The water board would receive the assistance from the commune as required. In particular,the communal accountant would be responsible for the accounts of the utility, which would be reviewed every yearby the provincial inspector of the Department of Inspection for Communal Projects of the Ministry of the Interior.

2.13 Where rural water systems served more than one commune, the water boards of the compiunesinvolved would form an intercommunai water authority. This body, composed of ten to twolve eloctedrepresentatives would operate all fixed assets that served the communes involved. The authority would charge auniform tariff; the communal water boards would pay the bills and recover the cost from the users of theseintercommunal systetns.

Sector Development frongam

2.14 Since 1985, the rural water supply sector has been developing rapidty. Many projects are under wayand studies are being carried out for future projects under the auspices of IDA, UNICEF, European DevelopmentFund (EDF), KfW and Belgian Cooperation (AGCD). The project financed by IDA, KfW and AGCD would cover10 provinces: Kayanza, Karuzi, Gitega, and Muramvya for IDA; Ngozi, Muyinga, Ruyigi, Bujumbura and Bururifor KfW; Cibitoke, Bubanza, and Makamba for AGCD. The EDF has initiated projects in the provinces ofCankuzo Rutana and Kirundu, plus the Mugamba Project covering partially the provinces of Bururi, Bujumbum,Muramvya, and Kayanza. This program would cover the whole country for a total investment cost of about US$73million.

2.15 The Water and Sanitation Project (PEA) financed by UNICEF includes the development and protectionof 6,400 springs by 1992, the construction of 710 km of piped systems and 5,650 pit-latrines, and the training of300 commnunal water attendants. In addition, many NGOs such as Association Française des Volontaires du Progrèsand Action Aid, contribute to the sector development.

2.16 All donors involved in the rural water sub sector have agreed to promote decentralization ofresponsibilities at local level and cost recovery, as specified in the letter of sectoral policy. After completion ofail these projects the service level in rural areas would rise from 48 percent at the end of 1990 to about 70 percentin 1997. 2/

2.17 'Me urban water supply sector would be developped under KfW and CCCE financed projects inBujumbura and in ten secondary centers (Kirundo, Muyinga, Rumonge, Rulyigi, Karuzi, Buhiga, Mabanda, Burui,Cibitoke and Makamba).

2.18 During project implementation the government would submit updated three-year expenditure andinvestment programs by October 31 annually to IDA (para.7.01 (e». The government would ensure thatinvestments in the water supply and sanitation sector are technically, financially and economically justified. IDAwould also review and romment on DGHER's annual budgets (para.7.01 (e)).

Sector Constraints

2.19 The primary constraint is the capacity and willingness of the beneficiaries to pay for potable water.This is likely to be a continuing problem since water charges will rise as more sophisticated an costly systems wilUbe installed, with pumping stations and treatment plants.

2.20 Another constraint is the weak formal coordination between the various donors and projects. Noformal meeting has been held in Burundi since the 'Décennie Internationale de l'Eau Potable et de l'Assainissement^(DIEPA) workshop in January 1982. To strengthen coordination in the sector the govermment would send itssectoral policy letter to aU donors concerned with the sector and would convene an annual meting of theirrepresentatives to review progress in implementing sector policy and investments.

2/ TIi rural population in 1989 was 4.9 million. By 1997 the rural population would rise 'o 5.8 million.

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Rationale for Bank Participation

2.21 Access to safe water supply has been, within the DIEPA, accorded a high priority by the govemnentand the actual policy is to develop the necessary social infrastructure which should directly benefit the population,by providing an equitable access to basic goods and services such as health, transportation and safe water supply.

2.22 The Bank involvement in the water sector is consistent with the govemment's main objectives namely(a) to increase the level and quality of water supply services; (b) to supply low-income neighborhoods; (c) to providecontinued support for increasirg planning, design and implementation capabilities of the institutions involved and(d) to achieve adequate cost removery in urban and rural water supply sub-sectors.

2.23 The Bank's objective in the rural water supply sub-sector is to support the government's policy to: (a)give communes full responsibility for water supply in rural areas sad (b) establish a system of charges to becollected from the beneficiaries to cover O.& M. and renewal costs. This policy, designed during the preparationof the rural water supply project (Cr. 1625-BU), was initiated in 26 communes in 1990. After extensive consultationwith other donors, this policy was endorsed by KfW, AGCD, EDF and UINICEF. The proposed project providesa good opportunity to implement this new policy throughout the country. IDA's leadership ensures that adequateattention will be paid to institutional and cost recovery aspects of the sector.

2.24 The Bank's objective in the urban water supply sub-sector is to help the government improve costrecovery mechanisnis and clarify the responsibilities between REGIDESO and DGHER. 'fe proposed project willfacilitate the dialogue between the institutions involved.

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m. lm PRRECT

Genesis

3.01 Under the rural water supply project (Credit 1625-BU), feasibility studies wre carried out for newrural water supply schemes in four provinces: Ngozi, Muyinga, Kayanza and Karuzi. TIe studies were completedin July 1988. After review, MDR decided to retain 43 gravity systems, 9 in Ngozi province, 5 in Muyingaprovince, 18 in Kayanza province and 11 in Karuzi province. Tie Bank agreed to finauce the final design studiesfor these systems. The contract was awarded in March 1990 and the studies began in May 1990.

3.02 In July 1989, MDR requested KfW to finance the works for these four provinces. Following anappraisal mission in October 1989, KfW agreed to finance the works for the 14 systems in Ngozi and Muyingaprovinces and to apply the institutional and financial arrangements spelled out in the sector policy letter. nie KfWgrant was approved in July 1990 and the bidding process is scheduled to start during the second semester of 1991.

3.03 During a preparation mission in November 1989, meetings were held in Bujumbura with the BelgianCooperation (AGCD), which agreed to cofinance the proposed project for the provinces of Cibitoke, Bubanza andMakamba. A Belgian Franc 39 million (US$1.3 million) special agreement was signed by the Belgian and tieBurundian Governrnents to finance the studies in these 3 provinces. At the same time the government requestedthe Bank to finance studies in two other provinces, Gitega and Muramvya.

3.04 During tie appraisal mission, meetings were held with the UNICEF's PEA project, and with NGOs.Participants agreed to cooperate on the development and protection of about 3,000 springs in the provinces coveredby the project.

Proect Obiectives

3.05 The objectives of the project are:

(a) To improve the living conditions of the population by increasing the quantity snd quality of potable water;(b) To implement the policy of payment for water, in urban snd in rural areas;(c) To enhance responsibility of local govenments for maintaining water supply facilities;(d) To strengthen the institutions involved in water supply; and(e) To help the govermment develop and implement appropriate institutional arrangements in water supply

sector.

3.06 These objectives are consistent with the decentralization policy of the goverument, and are supportedby the Bank. In particular, the Bank is financing under the second urban development project a study aiming atimproving financial as well as human resources of the communes.

3.07 A mid-term review by govermment and IDA will serve to follow progress, make corrections duringimplementation as needed and draw lessons on replicability and sustainability (para.7.01 (f). During this mid-termreview special attention would be given to the findings of the reorganization study of DGHER (para.3.08 C.(a)) anda relevant action plan would be proposed.

Proiect DescriDtion

3.08 The proposed project (for a detailed description see annex 5) would include the following components:

A. Water supply systens

Construction of new rural water supply systems m nine provinces: this component is split in twostages, according to the status of the studies:

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(a) First stge: In the provinces of Kayanza an Kamuzi (IDA financing ) and Ngozi and Muyinga (KtWfinancing), 43 systems have been retained and are listed below.

Table 3.1 Rural water supply systemsinduded in the project

(1) KAYANZA PROVINCE:

1. Bwisange 6. Mbogw. 11. Kabarore 16. Gatara Sud2. Gitwe 7. Muhanga 12. Ceaipzi 17. Buteganzua3. Gasare 8. Rubangu 13. Ruvoo 18. Rublrizi4. Munanira 9. Rango 14. Mikoni5. Remer, 10. Rugazi 15. Catara N

(2) KARUZI PROVINCE:

19. Kiyange 22. Canziktro 25. Bibara 28. Taba20. Gaharo 23. Ruzamaza 26. Casera 29. Gtanga21. Bukenyusi 24. Muogo 27. Rugwisa

(3) NGOZI PROVINCE:

30. Bomba 33. Cugumile 36. Nivo31. Buhanda 34. Cikomero 37. KIbuye32. Cahi 35. Kibuye 38. Ruhororo

(46 MUYINGA PROVINCE:

39. Gashoho 41. Klyanza 43. Nkoyoyo40. Karam 42. Mugano

(b) Second stage: In the 5 other provinces, Gitega and Muramvya (IDA financing), and Cibitoke, Bubanzaand Makamba (AGCD financing), provision for feasibility study, fiaal design and construction ofselected systems.

B. Development of springs

Catchment and development of about 3,000 springs in the provinces covered by the project;

C. Istitution building

(a) strengthening DGHER and DHA providing technical assistance, equipment and training, and financingan organization study of DGHER;

(b) assistance to the Project Unit (PAEMR) through the provision of technical assistance, equipment andtraining;

(c) training of communal wster board staff, chairm and treusurer and water supply attendants;

(d) consulting services for construction superision, the audit of DOHER and PAEMR's accoumts, andfeasibility and final design studies; and

(e) Updating of the urban water tariff, and master plan for water supply in Bujumbuma.

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Pe t Cost

3.09 The total cost of the project is estimated at FBu 9.02 billion (US$54.7 million), of which US$38.3million, or approximately 70 percent, represents the foreign exchange component. Base cost estimates are in pricesas of June 1990. This cost includes refinancing of the IDA Project Preparation Facility (PPF) of US$950,000,which was approved on March 29, 1991.

3.10 Cost of works were estimated on the basis of consultant's final design studies for works to be carriedout in tL. first four provinces. All cost estimates for civil works and equipment are based on recent bid prices andquotations for similar works or supply.

3.11 Since goods and equipment for project purposes would be imported free of customs duties and internaltaxes, base costs are net of tax liabilities. Taxes on locally procured goods (mainly cement and fuel), estinuted at6 percent of local costs, have been included in the estimate. They amount to FBu 32.9 million (US$0. 19 million).

3.12 Physical contingencies of 10 percent have been added to the cost of the works assessed on the basisof final designs and have been included in the provision for works that will be carried out after final design studies.The same rate bas been applied for equipment and operating expenses. Physical contingencies of 15 percent havebeen added to the base cost for works estimated on the basis of the feasibility study. No physical contingencieswere allowed for technical assistance, training and consulting services. The total amount of physical contingencies,US$3.44 million, represents 8.2 percent of total base costs.

3.13 The project cost estimates by component and categories of expenditures are summarized in tables 3.2and 3.3 below and detailed in annex 7.

Table 3.2 Project Cost Summary by ComponentPercent Percent

(US$ million) (Fou million) of ofLocal Foreign Total Local Foreign Total Total Foreign

A. Rurat uater suplty systes

-1) Ngozi and Muyinga 1.37 3.76 5.13 225.7 620.8 846.5 9.4X 73.3x(2) Karuzi and Kayanza 3.55 8.12 11.66 585.0 1339.1 1924.2 21.3X 69.6X(3) Gitega and Muramvya 1.84 5.95 7.79 303.7 982.0 1285.7 14.3X 76.4X(4) Cibitoke, Bubanza and Makanba 1.91 6.70 8.61 314.9 1105.3 1420.2 15.8X 77.8X

B. Springs 0.65 1.08 1.73 106.9 178.1 285.0 3.2X 62.5X

C. lnastitution building

(1) Project Unit (PAEMR) 1.69 2.96 4.65 278.2 488.6 766.8 8.5X 63.7K(2) DGHER 0.04 0.95 0.99 7.0 156.1 163.1 1.8X 95.7X(3) Communal Water Utilities 0.15 0.00 0.15 24.9 0.0 24.9 0.3X 0.0X(4) REGIDESO studies 0.00 0.34 0.34 0.0 56.1 58.1 0.6X 100.0X

Refinamcin of PPF 0.00 0.95 0.95 0.0 156.8 156.8 1.7X 100.0X

Totat Base costa 11.19 30.81 42.00 1846.29 5082.92 6929.21 76.9X 73.42

Physicel Contingencies 1.08 2.36 3.44 178.1 390.0 568.2 6.3K 68.6KPrice Contingencles 4.15 5.06 9.21 683.6 835.1 1519.1 16.8X 55.0X

GRAM TOTAL 16.4 38.3 54.7 2708.4 6308.1 9016.5 100.0X 70.0X

Prices as of June 1990.

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Table 3.3 Project Cest Sunmary by Type of expendituresPercent Percent

(US$ million) (FBu million) of ofLocal Foreign Total Local Foreign Total Total Foreign

Equipment, Pipes 0.01 11.57 11.58 1.6 1908.9 1910.5 21.2X 99.9XCivil Works 9.17 9.98 19.16 1513.7 1647.2 3160.9 35.1X 52.1XTechnical Assistance 0.13 2.56 2.70 22.2 422.6 444.8 4.9X 95.0OTraining 0.21 0.15 0.36 34.2 25.0 59.2 0.7K 42.3XOperating Expenses 1.53 0.00 1.53 252.1 0.0 252.1 2.8X 0.0KConsulttiig Services 0.14 5.59 5.73 22.5 922.4 944.9 10.5X 97.6XRefinancinq of PPF 0.00 0.95 0.95 0.0 156.8 156.8 1.7X 100.0O

Total Base Costa 11.19 30.81 42.00 1846.29 500Z.92 6929.21 76.9X 73.4x

Physical Contingencies 1.08 2.36 3.44 178.1 390.0 568.2 6.3X 68.6XPrice Contingencies 4.15 5.06 9.21 683.9 835.1 1519.1 16.8K 55.0X

TOTAL 16.4 38.3 54.7 2708.4 6308.1 9016.5 100.0 70.0X

Prices as of June 1990.

3.14 Price contingencies have been added to base cost plus physical contingencies. Price contingencies forlocal currency expenditures are based on domestic inflation estimated as follows: 8 percent in 1990, 7 percent in1991, 6 percent in 1992 and 5 percent thereafter. Price contingencies for foreign currency expenditures, are basedon recent estimates of international inflation as follows: 6.3 percent in 1990, 9.0 percent in 1991, 1.1 percent in1992, 0.4 percent in 1993, 1.6 percent in 1994, 3.8 percent in 1995, 4.0 percent in 1996 and 4.7 percent in 1997.Price contingencies are estimated at US$9.21 million, or 21.9 percent of total base costs.

Priect FlnançinL Plan

3.15 The proposed project would be financed by: (a) an IDA credit of US$32.7; (b) a !CfW grant of DM9.5 million (US$6.2 million); (c) a Belgian grant of BF 378.0 million (US$12.6 million); and a Burundesecontribution from Govemnment and communes of US$3.2 million equivalent.

The financing plan is indicated below, in US$ million:

Table 3.4 Project Financing FlanPercent

Local Foreign Totat of Total

IDA Credit 8.8 23.9 32.7 59.8XKfW Grant 1.4 4.8 6.2 11.3XAGCD Grant 3.0 9.6 12.6 23.0X

Sub total 13.2 38.3 51.5 94.1X

Government and Communes 3.2 0.0 3.2 5.9X

Total 16.4 38.3 54.7 100.OX

3.16 During negotiations agteement was reached tdat -he the communes served by the project wouldcontribute the equivalent of 5 percent of the cost of the works excluding pipe supply or about US$0.85 million (FBu140 million). This contribution could be in the form of labor, primarily for earthworks and supply of buildingmataerials, or monetary contribution (para.7.01 (g)).

3.17 The proposed IDA credit would finance 59.8 percent of total project cost, including 62.4 percent offoreign exchange requirements and 53.7 percent of local costs. The credit and grants and the governmentcontribution for the rumal sub sector would be provided to the executing agency (DGHER), and to the communesa grants.

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IMRIentati

3.18 DGHER would be the implementing agency for the the project, except for REGIDESO studies whichwould be carried out under responsability of MEM. The general director of D(HER would be assisted by a projectunit financed by the project.

3.19 The project unit (PAEMR) created in the rural water supply project under the authority of DGHERwould continue to coordinate the project implementation. At the end of the project, the project unit would bemerged into DHA under DGHER according to the conclusions of the proposed organization study: PAEMR'sdirectorate would become the water planning department of DWHER. The maintenance unit would continue toprovide assistance to the communes as a department of DGHER.

3.20 PAEMR would comprise thres units under the esponsibility of the director:

(a) PAEMR's directorate. This unit would include a project director, an adviser (job description in annex15) and four support staff (an administrative assistant, an accountant, a secretary, and a driver). The unitwould program project execution and provide for monitoaang and supervision. This task would includepreparing consolidated project accounts, quarterly reports, studies, audits and the project completion report.

(b) The maintenance unit. This unit would include a maintenance engineer (job description in annex 15,financed by AGCD), a counterpart and five sanitary engineers. Its role will be to insure technical controlof the systems in operation, to train communal attendants and to assist the communal water utilities withmaintenance problems.

(c) The accounting control unit. This group of four accouatants would be responsible for on-the-job trainingof communal accountants and for annual control of the accounting system of the communal water utilitiesduring the first four years of in;;iementation. Thereafter this control would be carried out by theinspection of communal projects in the ministry of the interior.

(d) The sensitization unit. This unit would have ten people: a community development expert (job descritionin annex 15), a counterpart and eight social workcers. This unit would help the communes set up communalwater utilities and would develop community awareness program to educate the population about the publichealth implications of safe water snd the need to support such services by paying for the water. Thisprogram is expected to be completed in four years.

3.21 Construction of the water works would take place in lots corresponding to the supply of pipes and theimplementation of construction by provinces or group of provinces. Each cofinancier would finance different lotsin line with its own procurement regulations. Tie development and protection of springs would be carried out byUNICEF and NGOs. Annex 5 shows the pro'ect implementation schedule.

3.22 For Gitega and Muramvya provinces, a feasibility study is underway and would determine the needsof water supply systems to be constructed. Tie projects would be submitted to IDA for review, selection andapproval. The priorities would be based on per capita investment costs and the capacity and willingness of thepopulation to pay the fees involved. Thereafter final design for selected systems would be prepared and the programwill be implemented.

3.23 Consultants would provide engineering services for feasibility studies, final designs and supervisionon terms considered acceptable by IDA or other cofinanciers.

Training and Sensitization

3.24 Training programs would be established to strengthen institutions and personnel at all levels ofDGHER, tie communes sed the communal water utilities. Tue training program would: (a) upgrade the skills ofDGHER and PAEMR senior staff; (b) improve t1,e skills of the maintenance staff of DGHER and the communa!

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water utilities; (c) educate communal administrators and representatives of user's associations in the use of watersupply systems; and (d) upgrade the knowledge of communal accountants in accounting, financial reporting systemsand collection procedures.

3.25 Sensitization would be mainly addressed to the population and the communal and user's associationpersonnel to raise their awareness rcgarding the advantages of higher-quality potable water and of maintninZ thesystems by paying a fair price for the water.

3.26 The training program would include short-term seminars abroad for DOHER and PAEMR senior staff,and training sessions in Bujumbura for maintenance engineers and accountants of PAEMR, communal administratorsand communal water utilities employees. A training program for communal accouatants, including accountingsystems of communal water utilities will be carried out under the second urban development project (Cr 1968-BU).On-the-job training for water supply attendants and communal accountants would be provided by technical assi6tancoand by PAEMR personnel. A special unit would be created in PAEMR to implement the sensitization program.This program would tap the expertise of NGOs.

Procurement

3.27 Contracts for civil wors (US$14.3 million) would be awarded after prequalification on the basis ofInternational Competitive Bidding (ICB) and in accordance with the IDA's guidelines. A preference of 7.S percentwould be applied to ICB bids from domestic civil works contractors. Contracts for simple or small works of lowcost (5 contracts; aggregate value not to exceed US$800,000), would be awarded through Local Competitive Bidding(LCB). The contracts would be advertised locaily but open to foreign bidders, following local procedures that willbe acceptable to the Association. Tiese contracts would cover construction of the communal water utilityworkshops.

3.28 The development and conversion of the 3,000 springs scattered in the whole country involvecommunityparticipation and sensitization of population. It is proposed to contract directly the services of specialized andqualified NGO's and UNICEF to continue carrying out this kind of work in their respective areas, at an estimatedcost of US$1.8 million. The Association would review proposed contracts between NGO's and Governement.

3.29 Contracts for supplying pipes (USS8.4 million) would be awarded on the basis of InternationalCompetitive Bidding (ICB) in accordance with IDA's guidelines. A preference equal to the applicable custom dutiesand other import taxes, with a maximum of 15 percent, would be applied to the bids of qualified local manufacturersparticipating in ICB. Ligit vehicles and office equipment for the DGHER and the PAEMR (aggregate value notto exceed US$800,000) each valued at more tdan US$10,000 would be purchased through Local CompetitiveBidding (LCB) following procurement procedures that wil be acceptable to the Association. Foreign suppliers areeligible to participate. Office equipment, furniture, and supplies contracts valued at les than US$10,000 would bepurchased locally on the basis of at least tiree quotations, aggregating to US$250,000.

3.30 T'e Association's guidelines would be used to select consultants for technical assistance (US$l.9nillion), training (US$0.4 million), and consulting services (US$3.7 million). The conmulting services includesupervision of works (US$1.7 mrillon), final design (USS0.6 million), and 3 studies (aggregate value US$1.2million) and audits (US$0.2 milion). Contracta financed by KfW and AGCD would be awarded under competitivebidding limited to nationals of their respective countries.

3.31 The Association would review tender documents and bid award procedures before invitating bids aswell as bid evaluations and proposed contracts for aU civil works estimated at more than US$300,000 and forequipment valued at more than US$S00,000. Selective post review of awarded contracts below the threshold levelsshould be carried out on about 1 in 4 works contracts, and 1 in 6 goods contracts.

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3.32 Table 3.5 shows the procuement procedures and arount.

Table 3.5 I!rocureent Anrangements(US$ million)

Percentof

Project Etements ICB LCB Other #.A. Total total

Equ.ipent and pipes 8.4 0.8 5.5 bI 14.7(8.4) (0.8> (0.2) (9.4) 63.9X

Civil works- Water systems 14.3 0.8 9.8 bi 24.9

(12.9) (0.7) (13.6) 54.3X- Springs 1.8 1.8

(1.6) (1.6> 88.9X

Technical assistance 3.1 bJ 3.1(1.9) aJ (1.9) 61.3X

Training 0.4 0.4(0.4) a/ (0.4) 100.0X

Operating expenses 2.1 2.1(1.1) (1.1) 52.4X

Consulting Services 6.7 b/ 6.7<3.7) a/ (3.7> 55.2X

Refinancinq of PPF 1.0 1.0(1.0) (1.0) 100.0X

TOTAL 22.7 1.6 27.3 3.1 54.7<21.3) (1.5> (7.8> (2.1) (32.?> 59.82

Percent of Total 93.8X 93.7X 28.6X 67.72 59.82

a/ Contracts award using IDA guidelines for engagement of consultants.b: Contracts financed by KfW and AGCO.

Notes: Cost figures are rounded and include contingencies.Figures in parenthesis are the respective amonts that woutd befinanced by IDA.Equipuent on tocal shopping represents US9250,000.Cost figures include taxes on locally procured goods estimated toUSS0.19 million.

Disburmanent

3.33 Tiie schedule of credit disbursements, given in annex 12, is based on the disbursement profile for therual water supply project (Credit 1625-BU), except that it bas been adjusted to reflect disbursement for the initialdeposit in the special account sad refiuancing of the PPF. All disbursements will be made against normaldocumentation submitted to the Bank, except disbursements against opeating costs and eligible expenditures forcontracts valued at US$20,O00 equivalent or less, which will be made under Statement of Expenditures (SOE).Supporting documentation for these would be retained by the PAEMR and REGIDESO and would be availablo "oIDA during supervision. The closing date would be June 30, 1998.

3.34 To ensure prompt availability of funds for the project, IDA and the govemment would each make aninitial deposit. The annual Govemment counterpart fonds in FBu totaling US$0.45 million equivalent would bedeposited in the Project Advance Account at the Central Bank as a condition of credit effectiveness (para.7.02 (a».The account would be replenished to the same amount quarterly (para.7.01 (h)). A separate Special Account(revolving fund) in US dollars would be established in a commercial bank with an initial deposit of US$1,500,O00.Ihe Special Account opening balance was calculated as the equivalent of thre. months of IDA disbursements fromthe pruceeds of the proposed credit.

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3.35 The table 3.6 below gives the categories to be financed from the IDA Crdit and the amoumts and thepercentage to be funanced in each category:

Table 3.6 Disbursements under IDA Credil

Amowt of Credi t Percentage ofailocated expenditures

Category (US$ million) to be f inanced

1 Equipment(a) pipes for Karuzi and Kayanz. 4.2 100X of CIF or ex-factory(b> pipes for Gitege and Muramvya 2.5 expenditures(c) Equipment excluditn pipes 0.4 and 80X of local expenditures

for Items procured locally.

2 Civil works(a) Karuzi and Kayanza 6.1 90X(b) Gitega. Muramvya and springs 5.2 90X

3 Technical assistance 1.6 100X at

4 Training 0.4 100X a/

5 Operating expenses 0.8 70X untit December 31. 1992;50 from January 1, 1993 toDecember 31, 1995; 30X fromJanuary 1, 1996 to December31, 1997; and 10% thereafter

6 Consulting Services 3.1 100X ai

7 Refinancing of PPF 1.0 Amount due

8 UnaLUoceted 7.4

TOTAL 32.7

a/ Burundi has agreed to exempt these contracts of taxes.

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IV. IMPLEMENTiNGiAGENCX

4.01 The Borrower will bc the Government of the Republic of Buwmdi. DGHER would be theimplementing agency for the project except for the REGIDESO studies which would be undertaken under thesupervision of MEM. To ensue good communication betweon the "mistries and institutions involved, and tooversee project implementation, a steering committoe would be established, comprised of senior representativesof MDR, MEM, DGHER and REGIDESO. This committee would be convened every three months and wouldbe chaired by MDR. The establishment of this committec would be a condition of effectiveness (para.7.02 (b)).

DGHER

Orianizadon and Manaumnent

4.02 The General Directorate for Rural Water and Energy (DGHER) was established in 1988 with theresponsibility of improving the supply of potable water in rural areas and implementing rural electrification.The distribution of responsibilities between DOHER and REGIDESO is not clearly defined (see para. 2.06).The tranfer of water systems located in rurl coenters to the concemed communes would be a condition ofdisbursement for pipes acquisition for the provinces of Kamzi and Kayanza (jara. 7.03). The situation is thesame for electricity services. Under the energy sector rehabilitation project ap: roied in April 1991, it wasagreed that the issue for electricity would be resolved before June 30, 1992.

4.03 The director of DGHER is appointed by the President of the Repu ,lic, upon nomination by theMDR. The water and sanitation department (DHA) of DGHER has been the in ïplementing agency for the ruralwater supply project financed by IDA, which is almost comi leted. Annex 12 s iows the organization chart ofDGHER.

4.04 DGHER's financial performance has to be assessed as that of a departinent of a ministry. WhileDGHER enjoys soms independence, its finmacial operations are embodied in the govemment budgetary system.With the exception of revenues associated with installing electricity meters and billing for electricity, DGHERdoes not have any financial resources of its own. These revenues amounted to FBu 60.7 million (US$0.41million) in 1988; the government contribution was FBu 87.4 million (US$0.53 million). DGHER thus relies ongovernment appropriations and donors' contributions.

Staffing and Personnel

4.05 In July 1990 DGHER had 101 employees, of which 45 in water operations. Approximately 20percent of the staff is permanent. These employees are paid according to the salary structure of the publicsector, which is significantly lower than that of parastatal agencies like REGIDESO. The remaining 80 percentare contract personnel who have higher wages, but do not have the benefits of permanent employment and maybe dismissed at the end of their contract. A technical adviser for rural electrification is already in placefinanced by the Belgian Cooperation.

4.06 Administration and accounting for both water supply and rural electrification are weak. DGHERhas recently hired an administrative and financial director and under the energy sector rehabilitation project, afince and accountîug expert widl be recmited to improve DGHER's performance assisting in organizing thecommercial and financial aspects. DHA lacks qualified technical staff, and to improve technical performance ofthis department, the Belgian Cooperation would extend the contract of the hydraulic engineer already in placeasd the proposed project would provide training and equipment.

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4.07 To strengthen its operational and managerial efficiency, a project unit (PAEMR) was establishedwithin DGHER under the rural water supply project. This unit was assisted by three external experts: a projectcoordinator, a maintenance engineer, and an accountant. This unit will be in charge of implementing theproposed project, assisted by a project advisor and a specialist in community relations (IDA financing), and amaintenance engineer (AGCD financing) (se. para. 3.20). Recruitment of these experts would be a condition ofcredit effectiveness (para.7.02 (c)).

Accountine and Auditing

4.08 The law requires DGHER to maintain accounts on an accnual basis using the double entry systemand in accordance with the national accounting system plan. In practice accounts and financial reportingsystems are used to determine compliance with the authorized limits of the budgets for recurrent expendituresand investment. Neither consolidated nor separated balance sheets or profit and loss accounts exist for watersupply and electricity operations. It is therefore difficult to abstract information and statistics on annualoperating costs for these services.

4.09 Consumer billing is presently limited to DGHER's electricity operations in five centers, using thesame tariff as REGIDESO. To what extent meters are regularly read, bills distributed, and revenues collectedis difficult to assess given the dispersion of services in the country. Initially, in an effort to promote electricityconsumption, DGHER installed connections without up-front payments and did not require regular payment ofelectricity bills. This resulted in arrears of about FBu 3 million as of December 31,1989, of which electricitysales accounted for 80 percent and connection charges for 20 percent. TIe major part (70 percent) is owed byprivate sector, the remaining part (30 percent) by government agencies. One of the najor tasks of the financeand accounting expert would be to improve billing, revenue collection and accounting systetns.

4.10 Systematic reporting of DGHER's operations is weak and somewhat irregular. Though an annualreport is prepared, coverage varies considerably. The finance and accounting expert is expected to establish amonthly and quarterly management reporting system, mnd to e-:r te that balance sheets, income statements andfund flow statements are prepared shortly after the end of D(>1'C-R's financial year. Tie appointee will alsoestablish procedures for allocating expenditures between Wati udi electricity.

4.11 During negotiations, it was agreed that DGHER woul i provide to the Bank: (a) quarterly reportscovering the progrs of the prtect and other operations, w'.co-.d0g to a system of monitoring indicators; (b)separate accounts for its water arid electncity operations from F': >1; and (c) a project completion report on thebasis of a stipulated outline within six months of the closing date -n the credit (para.7.01 (i), (j) and (k».

4.12 Under the rural water supply project, DGHER agrid mat its accounts and financial statementswould be audited by an external auditor and submitted to the Bank s i,?in six months of the end of each fiscalyear. DGHER's finance and accounting office has not been able tu st the six-month deadline. Auditedaccounts for 1987 and 1988 were delayed by up to one year. T'he i.eorta that have been received are heavilyqualified. Auditors highlight the incomplete recording of accounting tansactions, the lack of accountingprocedures, and deficiencies in the follow-up and monitoring of billirg, collection and transfer of revenues.Because of these deficiencies the books do not provide a reliable and &ccllrate picture of the financial position ofDGHER. This situation will be improved as a result of the technical assistance to be provided under the energysector rehabilitation project.

4.13 The audited financial statenients for 1989 and 1990 are not yet available. Under the rural watersupply project a short-term accounting expert has been recently recruited to put in order the DGHER's accountsbefore auditing. Presentation of the 1989 &ccounts to the Bank was a condition of negotiations. The auditingfirm has been hired and presentation of the 1989 and 1990 audit reports would be a condition of crediteffectiveness (para.7.02 (d)). During negotiations, assurance was obtained that the DGHER would providewitiin 6 months of the end of each fiscal year (a) its audited financial statements; and (b) the audited accountsfor the rural components of the proposed project (par. 7.01 (1)).

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V. FINANCIAL ANALYSIS

A. SuL M

5.01 Under the rural water supply project, a system of water charges was implemented in the 33communes covered by the project. The charges for water consumption were set to: (a) guarantee the propermaintenance of the systems financed under the project, and (b) to sustain the operating utilities. The proposedproject is expected to extend the same cost recovery approach to the whole country.

5.02 The facilities wilI be handed over to the communal water supply utilities (and to the intercommunalwater authorities). These entities will be responsible for O.& M. and replacement. The govemment will retainresponsibility for servicing the credit received for the proposed project. Accordingly, this credit will not appearin the financial accounts of the water utilities or the commnunes.

Demand Projections

5.03 Projections of water consumption have been made for three separate categories: standpipe users,private connections and public connections. Standpipe users are assumed to have a demand for 20 Icd when thesystems become fully operational (between 1994 and 1996). This demand is assumed to remain at this leveluntil 2005, the last year for which demand and financial projections are made. Consumption is expected to risewith the population; estimates for increases in each of the provinces range from 2.7 to 3.0 percent a year.Standpipe users will be responsible for almost 90 percent of all consumption (see annex 9). Private connectionusers are assumed to have a consumption of 100 Icd and an annual growth rate of about 3 percent, whileconsumption from public connections (schools, hospitals, govemment offices) is expected to grow on theaverage by 15 percent a year.

Oneration and Maintenance, Renewal Coasl

5.04 O.& M. coste are calculated taing account of the length of each system, and include permanentand temporary personnel costs, administrative expenses and a provision for smaUl repairs. Renewal costs aredetermined on the basis of a 40-year life for civil works, pipes, and buildings and calculated to increase by 0.1percent a ycar, starting froin 0.5 percent of the investment the first year of operation.

Water Revenues. Water Tariff and Annual Fee

5.05 Water revenues are calculated to cover the expenses of the communal water utilities and generatea 5 percent income to finance small extensions. Operation and maintenance costs and renewal charges areprojected ta1ing into account a 6 percent inflation rate from the time the system is fully operational until 1996and 5 percent thereafter. Projections have been made on the basis of a collection rate of 75 percent. There is noassumption of voluntary work in the projections. Income statements per conunune are shown in Annex 10.

5.06 Water revenues would be deposited in a special account at the 'Coopératives d'Epargne et deCrédit' (COOPECs) or local banks and used to pay the expenses of the communal water utilities includingpermanent and temporary personnel salaries, administrative expenditures, operating costs, repairs, smallextensions of the systems and replacement. The communal project inspection department of the Ministry ofInterior would inspect the financial accounts of the communal water utilities.

5.07 Based on acual costs, including O.& M. costs and renewal charges, excluding the financialcharges for the credit, the water tariff per cubic meter for public and private connections in 1990 real termsranges from FBu 38 to 68 (US 23 to 41 cents). Based on the same assumptions, the annual fee in 1990 value

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for a family using a standpipe would range from FBu 455 to 1,025 (US$2.75 to 6.20). Annex 9 shows theamount of annual feus and the water tariff per commune.

5.08 Dunng negotiations assurance was obtained from the govemment that: (a) water tariff for publicand private connections and annual fec for standpipes users b. sufficient to cover operation, maintenance andrenewal costs; (b) charges be reviewed annually by end of October of each year to determine their adequacy; (c)revenues be deposited in a separate accouzt and payments from this account be made only for expenses relatedto water supply; (d) water accounts of communal water utilities bh annually verified by the inspectors of theMinistry of Interior; and (e) reports related to the inspection of the accounts bh made available to theAssociation for its review (para.7.01 (m».

Affordabilitx

5.09 In most of the water systems the annual fee per family would amount to 1.2 to 2.8 percent ofannual average cash income 10/. It is generally agreed that such a contribution for safe water is acceptableif it remains below 3 percent. KfW recently proposed an annual fee of FBu 1,000 for beneficiaries in theprovinces of Ngozi and Muyinga which represents about 2.8 percent of the average cash income. When somebeneficiaries incomes are well below the average, the communes will have to provide subsidies for these users,or include a level of cross-subsidy in the tariffs.

5.10 During construction the communes served by the project would contribute the equivalent of 5percent of the cost of the works excluding pipe supply and this contribution could be in the form of labor.Community participation in construction poses no difficulty as the population traditionally contributes half a daya week to improve communal facilities. This labor would be made more productive by the involvement ofNGOs that have some experience in working with the communes. After construction the effect of the project oncommunal budgets would be minimal because recurrent expenditures would be puid for by the beneficiaries. Ifthe water board fails to fulfill its functions, the commune would continue to pay the salary of the communalwater attendants already in place.

B. Urban Sub sector - REGIDESO

Past Financial Performance

5.11 Salient features highlighting REGIDESO's historical operating results and present positions aresualyzed in the SAR of the recently approved energy sector rehabilitation project and are shown in detail inaunex 11. REGIDESO's revenues from the sales of electricity and water increased from FBu 1,542 million in1987 (US$10.3 million) to FBu 1,836 million (US$12.2 million) in 1989. This represents an increase of about20 percent. Excessive capital investments, inordinate borrowing, and the devaluation of the FBu have broughttotal expenses, which have increased of about 95 percent from 1987 to 1989, to levels incompatible withrevenues. As a result, loses increased from FBu 331 million in 1987 (US$2.2 million) to FBu 3,303 million in1989 (US$22 million).

lmgrovements of Presen¢ Situation

5.12 To improve its performance REGIDESO has agreed under the energy sector rehabilitation projectto: (a) implement a management assistance partnership program ; (b) implement a financial restructuring plan;(c) reduce the staff of permanent agents to about 600 in 1993; (d) implement a trining program; (e) implementan intensive program of new connections in urban areas; (f) reduce the amount of its teceivables; (g) reviewannually electricity and water tariffs after exchange of views witb the Bank; and (h) improve administrativebuildings and facilities.

L lu rnual arems die annual average cash income is estimated at about FBu 36,000 in 1989.

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5.13 On the basis of the audited accounts for 1989, REGIDESO's capital restsucturing would requite anadditional capital increase of FBu 10.4 billion before an acceptable debt-equity ratio is achieved. The capitalincrease docs not roquite a new outlay from the government, but outstanding current liabilities estimated atabout FBu 3.4 billion, would bave to be converted to equity. In addition, KFW (Germany) and CCCE (France)have agreed to forgive part of their loans to the goverament for investmests by REGIDESO as a furtherincrease in equity. Tmes matters are under study by the government. Finally, the ongoing revaluation exerciseis expected to result in a revaluation s"plus of about FBu 25.4 billion that, according to internationally acceptedaccouating practices, could be used to absorb exchange loses and help in the financial restructuring.

Arrars and CObgI»

5.14 At the end of 1989 the balance on receivables for both electricity and water amounted FBu 1,272billion (US$8.5 million) of which 73 percent from the private sector, and represented 8.6 months of sales.Through compensation of debts all the balances due from govermnent and municipalities as of December 31,1988, were paid in 1989. At the end of march 1990, 41 percent of the amount due had been paid so thatarrears represent 4.4 months. A policy of systeniatic cut-off of electricity for delinquent accounts wasestablished in September 1989 and have resulted in some improvements in billing and collection. Duringnegotiations, agreement was reached that REGIDESO would set up a similar policy for systematic cut off ofwater hi the case of delinquent water accounts of more than 3 months (para.7.01 (n».

Water Tarif

5. 15 At an average of Fbu 40 (US 24 cents), the level of present water tariff per m3 is insufficient. In1987 the cost per m3 calculated on the fuU cost basis was FBU 54. Furthermore, the structure of tariffs whichranges from FBu 36 to 44 (US 22 to 27 cents) is inadequate. During negotiations, agreement was reached thata first step tariff increase of 15 percent for users wihose consumption is higher than 10 m3 per month, would beimplemented before December 31, 1991 (para.7.01 (o».

5.16 The proposed project would finance a study to update tariffs, the structure and level of which areto retlect the real cost of service, while also taking into account the financial capacity of the various incomegroups of consumers. During negotiations agreement was reached that (a) the Government would present to theBank an action plan for implementation of new tariffs based on the findings and recommendations of tus studyby July 1992 (para.7.01 (p»; (b) implementation of these tariffs would begin in Septem'v-r 1992 and should becompleted by September 1995 (para.7.01 (Oq; and (c) the Government would undertake an annual review withthe Bank of REGIDESO's water tariffs by the end of October (para 7.01 (r».

feflo[Tance ConËrac

5.17 A comprehensive study of REGIDESO was completed by a management consultant in April 1989.The suggested rehabilitation program was reviewed by the govemment and approved by all the principal donors(KfW, GTZ, CCCE end IDA). This program was incorporated in a performance contract signed between thegovermment and REGIDESO in July 1989. In compliance with the performance contract, the governmentincreased electricity tariffs in April 1990, restructwred the board of directors of REGIDESO, paid all publicdebts as of December 31, 1988, and authorized a capital increase as compensation for past debts. Someimprovements have already also ben noted, such as a new policy to increase connections, a reduction in thedelays for billings to 15 days, deposit of cash surpluses in revenue-producing bank accounts, a reduction inpersonnel (230 in 1989), mad the creation of planning and internal auditing units. To help REGIDESOimplement the performance contract, the energy sector rehabilitation project will finance a managementasstance partneraisp program with an operator experienced mi the mnanagement mad rehabilitation of publicutilities md which would have responsibility for some key activities in the financial, commercial, planning, mndpe- om _agmt mias.

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Future financial Poition

5.18 The projected financial statements of REGIDESO from 1990 to 2000 are presented in annex 11.Actions mentioned earlier produced positive levels of operating income (before interest) in 1990. Thereafterincome rises to FBu 2,155 million in 1995. All expenses, including interest, would be covered by revenues in1993. In 1990 REGIDESO financed about 33 percent of its investment program, and would maintain thatamount in the future. The rate of return on fixed assets was only 0.9 percent in 1990, and would increuse to2.9 percent in 1991, and 4.9 rercent in 1992. The debt service coverage ratio improves from 1.17 in 1990 to2.22 in 1995. REGIDESO's liquidity position becomes comfortable with an increase in the current ratio from1.17 in 1990 to 1.56 in 1995 and the debt-equity ratio is satisfactory throughout the period. With improvementsin management and operational efficiency, satisfactory investment programs, adequate electricity and watertariffs, and the financial restructuring described above, REGIDESO can become financially viable.

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VI. ECONOMIC AND SOCIAL ANALYSIS

lroiject Benefit

6.01 The proposed project will directly benefit some 1,150,000 people, providing safe potable waterthrough developed springs, standpipes or house connections. It is not possible to quantify the health benefitsdue to safe water since many factors influence improvements in health. Nevertheless, the water-bome diseasesthat are prevalent in Burundi (see Annex 3) would be checked and the number of sick days is expected todecline. Family members, almost exclusively women and children, travel long distances for water every day,particularly in the dry season. In nuav cases the possibility of drawing safe water close to the living areasshould provide time savings that can bc used for other activities.

6.02 A further important benefit is the gain from developing communal responsibility for local utilities.The principle of communal participation should reinforce the communal structure and serve as the basis forother improvements in human resource development. Local management of the water systems should ensureproper O.& M. and demonstrate to the beneficiaries that the fees will be more than offset by their improvedphysical well-being due to a safe water supply. With regard to institutional aspects, the proposed project wouldnot only benefit the communes but would also result in improvements in planning, executing, supervising andoperating rural water systems at the country level. This institutional strengthening should provide the basis forextending and replicating future water systems and other social investments. In addition, the project willenhance the cost recovery mechanisms in urban areas, and therefore improve the financial situation ofREGIDESO.

Prooect lustification

6.03 The proposed project will provide safe potable water supply for 24 percent of the rural population.The resulting improvement in health standards will contribute to the country's goal of developing humanresources and increasing agricultural production. The principle of delegating responsibility for the watersystems to the local level is a step toward decentralization, and should minimize the incremental burden on thenational budget.

Least Cost Solution

6.04 The project selected the most economic alternatives for meeting the demand. Wherever possible,springs and gravity water systems were identified and proposed. All the systems requiring pumping stations ortreatment plants were rejected because the population could not afford the expenses of O.& M..

Environmental lnmact

6.05 An assessment was made at the project appraisal stage of the potential enviroumental impact of theproposed project. The rural water supply systems and the development of springs have been designed takinginto account environmental considerations and they would reduce water losses and contamination. fle onlynegative enviroumental impact of the proposed project could result from the unsafe disposal of used water. flewater quantities that will be drawn from public standpipes and yard connections, however, will be relativelysmall. Therefore, the threat of pollution of aquifers is negligible. On balance, the environmental impact of theproposed project can therefore be considered positive.

6.06 Concerning future studies, they should cover such environmental issues as pollution resulting fromincreasing of water consumption. In addition suitable safeguards will be incorporate in bidding documents andcontracts to minimize potential environmental damage caused by civil works.

-25 -

Women's Rrle

6.07 As in most African countries, provision of water in Burundi is the woman's task, with assistancefrom the children. Women are responsible for food preparation and use most of the family's water. Thisproject would reduce the time women spend collecting water and allow them to engage in more productiveactivities. It is important that a significant number of women be elected to the commune-wide users committeesand communal water boards. Families would be less reluctant to pay for water if women were responsible forcollecting water charges.

Jmpact on Poverty Group

6.08 The poverty threshold is estimated in 1989 at 40 percent of the per capita GNP (US$80).Assuming a family of 4.6 persons, the poverty threshold is US$368 per family per year, or FBU 60,720. Thissum is about the average revenue, including self consumption, in rural areas. Therefore the poverty group inthe project areas is estiniated at 70 percent of the total population covered by the project, which represents about800,000 people at the time of project completion.

Project Risks

6.09 The proposed project largely builds on experience gained during the rumal water supply project andother Bank-fmanced projects. The major risks are not associated with the design and construction of the watersystems, but with sustained maintenance of the systems in rural areas. Experience in Africa has siown that tiebest results can be obtained by delegating responsibility to the village level and fostering the sense of communalownership. Questions remain as to whether the population can be sufficiently motivated over a long period topay the fees and to join in communal efforts when the system needs repairs. The training and technicalassistance provided to DGHER, as well as the sensitization program for the population, should minimize thisrisk.

6.10 However, it would not be prudent to assume diat the communal water utilities could solve ail themaintenance problems on their own. The necessary outside support would be provided by DGHER. This raisesthe question of whether DGHER could provide this, even after completion of the project. Tue techuicalassistance and the comprehensive training program provided to the maintenance assistance unit of PAEMR,which would be a department of DGHER at the end of the project, would reduce this risk tG acceptable levels.

6.11 In the urban sub sector the main risks are that (a) the govemment may resist further increases inwater tariffs; and (b) REGIDESO may be reluctant to implement the program proposed under the energy sectorrehabilitation project. The fact that the government decided to increase electricity tariffs recently, and theinterest of REGIDESO in preparation of the rehabilitation program suggest these risks are low.

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VII. AGREEMENTS REACHED AND RECOMMENDATIONS

Agreements Reached at Negotiations

7.01 During negotiations, assurances were obtained from the government on the following points:

(a) Before June 30, 1991, instructions for standpipes management and payment of water by users incenters operated by REGIDESO would be sent to local authorities (para. 1.16)

(b) Before the end of 1993, the financial and institutional arrangements for the rural water supply sub-sector would be formalized, taking into account the experience g8ined after three years ofimplementation of the new policy (para.2.08);

(c) Before starting works in a specified commune the communal water utility would be established(para.2. 10);

(d) During project implementation, updated tdree-year expenditure and investment prograns would besubmnitted to IDA annually by October 31 for review and comments (para.2.18);

(e) The Association would be given the opportunity to review DGHER's budget each year for thefollowing fiscal year (para.2. 18);

(f) A mid-term review would be organi.-ed by December 1994, concurrently by IDA and governmentto assess the project achievements and to take the corrective measures that might be needed(para.3.07);

(g) The communes would contribute the equivalent of 5 percent of the cost of the works excluding pipesupply. This participation could be in the form of labor-or monetary contribution (para 3.16);

Oi) The project advance account would be replenisied quarterly with government counterpart funds inFBu to bring the level of the account to US$0.45 million equivalent (para.3.34);

(i) DGHER would present separate accounts for its water and electricity operations from 1991(para.4. 1 1);

(j) Quarterly progress reports would be prepared by PAEMR and submitted to IDA within two monthsafter the end of the quarter (para.4. 11);

(k) DGHER would prepare a completion report and submit it to IDA within six months of the creditclosing date (para.4.11);

(1) Accounts of DGHER, as well as project accounts, would be audited annually by external auditorsacceptable to IDA, and audit reports would bu subniitted to IDA within six months of the close ofthe fiscal year (para.4.13);

(m) Water charges would be sufficient to cover opemtion, maintenance end renewal costs and would bereviewed annually by the end of October to determine their adequacy; revenues would be depositedin a separate account and payment from this account be made only for expes related to watersupply; water accounts of communal water utilities would be verified annually by the inspectors ofthe government; snd reports related to the inspection of th. accounts would be made available tothe Association for its review (para.5.08).

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(n) REGIDESO would set up of a policy for systematic cut off of water in respect to delinquent wateraccounts (para.5. 14);

(o) Urban water tariffs for users whose consumption i8 higher than 10 m3 per month would beincreased by 15 percent before December 31, 1991 (para.5.15).

(p) New structure and level of urban water tariffs would be prepared by REGIDESO and submitted tothe Bank, as well as an action plan for implementation of new tariffs by July 1992 (para.5.16);

(q) Implementation of new tariffs would begin in September 1992 and should ba completed bySeptember 1995 (para.5. 16); and

(r) The govermment would undertake annual reviews with the Bank of REGIDESO's water tariffs bythe end of October (para.5. 16).

Conditions of Effectiveness

7.02 Before effectiveness of the proposed credit, the govermmat should have:

(a) Established a project advance account in FBu in the BRB, and made an initial deposit equivalent toUS$0.45 million (para.3.34).

(b) Established a steering committee to oversea project implementation (para.4.01);

(c) Hired the three technical assistants for the execution of the rural water supply components of theproject (para.4.07); and

(d) Sent to the Bank the audit reports of DGHER's accounts for 1989 and 1990 (para.4. 13).

Conditions of Dishursement

7.03 Transfer of water systems located in rural centers to the concerned communes should be effectiveprior to any disbursement for the pipes acquisition for the provinces of Kani and Kayanza(para.2.06 and 4.02).

Recommendation

7.04 With the above assurances, agreements and conditions, the proposed project would be suitable foran IDA credit of SDR 24.2 million (US$32.7 million).

-28- Annex 1Page 1 of 6

BURUNDI

SECTEUR DE L'EAU ET DE L'ASSAINISSEMENT

LETTRE DE POLITIOUE SECTORELLE

A. SituatiOn Actuelle du Secteur

Organisation Institutionnelle

1. L'eau potable dans les centres urbains est produite et distribuée par la REGIDESO, entreprise publiquecréée par le décret-loi No. 1/196 du 2 Octobre 1968. La REGIDESO est supervisée et contrôlée par le Ministbrede l'Energie et des Mines. Aux termes de l'article 3 du décret No. 100/12 du 11 Mars 1986, portant modificationdes statuts de la REGIDESO, l'établissement a pour mission 'le captage et la distribution d'eau.. .dans les centresjugés importants par les autorités compétentes". Pris le même jour, le décret No. 100/13, portant classification descentres urbains, déterminait 23 centres en plus de la capitale: deux villes principales, neuf villes secondaires, dixcentres à vocation urbaine et deux centres ruraux. Ces 23 centres sont le domaine d'action de la REGIDESO, enplus de Bujumbura.

2. L'eau potable en milieu rural est la responsabilité de la Direction Générakl de l'Hydraulique et desEnergies Rurales (DGHER), du Ministère du Développement Rural. Cette stucre avait été créé par décretNo. 100/18 du 2 Février 1979, sous le nom de Département de l'Hydraulique et de l'Electrification Rurales (DHER).Le décret No. 100/209 du 22 Décembre 1988 l'a transform6 en la DOHER, avec un Département de l'Hydrauliqueet de l'Assainissement (DHA).

3. L'assainissement en milieu urbain est contrôlé par le Mînistére des Travaux Publics et du DéveloppementUrbain. La Régie des Services Techniques Municipaux (SETEMU), crée par le décret No 100/162 du 12 Juillet1983, et réorganisée par celui No 100/151 du 20 Juillet 1989, placée sous la tutIle de la Mairie de Bujumbura, aen charge, dans la capitale, l'assainissement des eaux usées et pluviales. Elle s'occupe également de l'enlèvementdes ordures ménagàres, de l'entretien de la voirie, de la construction et de l'entretien des équipements municipaux.Le financement de la SETEMU est assré notamment par la municipalité de Bujumbura. L'assainissemet descentres secondaires urbains est de la responsabilité des communes assistées par le Ministère des Travaux Publicset du Développement Urbain.

4. Le décret No. 100/226 du 11 Décembre 1989 a cré la Commission Nationale de l'Eau et de l'Energie,chargée de coordonner les actions dans ces secteurs. Elle est présidée par le t 'inistre ayant l'Energie dans sesattributions, et comprend deux sous-commissions: une sous-com"ission nationale Je l'eau et une sous-commissionnationale de l'énergie dont les membres ont été nommés par l'Ordonnance Ministérielle 760/074/90 du 10 Février1990.

Niveaux de Service

5. Environ 92 % de la population urbaine est desservie en eau, 409% au moyen de branchements particulierset 52% par des bomes-fontaines. Dans les zones ruales, le taux de desserte est passé de 22% en 1982 à 48% àla fin de 1990, sur une population urale de 5.03 millions. Le taux de desserte varie considérablement d'uneprovince à l'autre. Environ 17% de la population rurale est desservie par des adductions, 31 % par des sourcesaménagées et 0,3 % par des puits. Au début de l'année 1990 il y avait en service 338 adductions, alimentant 2765bomes-fontaies et 1921 branchements particuliers, 11000 sources aménagées et 97 puits.

Annex 1

- 29- Page 2 of 6

6. Pour l'assainissement il est estimé que 20% de la population de Bujumbura utilise des fosses septiquesou des latrines améliorées, ce pourcentage étant le même pour le milieu rural, où seules sont utilisées des latrines.

B. Politique Sectorielle du Gouvemement

Objectifs du Gouvernement

7. Les objectifs du Gouvernement pour l'an 2000 sont, pour l'eau potable, d'assurer un niveau de dessertede 98% dans les centres urbains et celui de la totalité des populations des zones rurales, sous la réserve de leuréquipement dans des conditions géographiquement possibles. Pour l'assainissement, l'objectif est que 70% de lapopulationde la ville de Buiumbara, et 60% de celle des centres urbains et du milieu rural dispose d'un systhneadéquat d'assainissement, pouvant aller, suivant les zones, de l'assinissement collectif aux fosses septiques et auxlatrines améliorées. Afin de satisfaire ces objectifs, la politique sectorielle du Gouvernement est la suivante:

Recouvrement des Coûts

8. La politique du Gouvernement est que la totalité des coûts soit supportée par les bénéficiaires dans lescentres urbains, aussi bien pour l'eau que pour l'assainissement. Dans cette optique, les tarifs de l'eau et les futures

xodalités de recouvrement des charges de l'assainissement feront l'objet d'une revue régulière permettant de lesajuster à l'évolution des coûts, l'objectif étant d'atteindre en plusieurs années le coût marginal à long terme. Enparticulier le Gouvernement veillera à ce que soient appliqués les articles 11 et 24 du Contrat Plan signé entre laREGIDESO et le Gouvernement en date du 7 Juillet 1989, conformément au plan d'action figurant en partie D dela présente lettre.

9. Dans les zones rurales, le Gouvernement est décidé à ne faire prendre en charge par les populationsbénéficiaires que les fais de fonctionnement, d'entretien et de renouvellement, le coût des investissements restantà la charge de l'Etat. Cette politique pourra être revue à moyen terme, pour tenir compte de l'amélic ion espéréede la situation économique des populations rurales.

Délimitation des Responsabilités entre REGIDESO et DGHER

10. Le Gouvemement a confié à la REGIDESO la gestion de centres ruraux qui ne figurent pas dans laclassification des centres urbains définie par le décret No. 100/13 du Il Mars 1986, mentionné ci-dessus. LeGouvernement, par souci de bien définir les responsabilités de chacun et en application de sa politique dedécentralisation, fera rétrocéder la gestion de ces centres aux communes concemnes. Là où l'appui technique dela REGIDESO s'avèrera indispensable, les communes concernées passeront avec REGIDESO un contrat d'entretientechnique des installations, moyennant une rémunération. Pour couvrir ces frais, la commune gardera laresponsabilité de percevoir les redevances n6cessaires auprès des populations bénéficiaires. Néanmoins, la communesera libre de confier l'entretien technique à une société privée si elle le préfsre.

Dl5centralisation des ResRgonsabilit&s

En milieu rural:

11. Au cours de sa sdance du 16 Août 1990, le Conseil des Ministres a analysé les problèmes relatifs àl'alimentation en eau en milieu nual. Il a pris la décision de faire préparer par le Ministre de l'Intérieur le Ministredu Développement Rural et le Ministre de l'Energie et des Mines une Note d'Instructions à adresser à tous lesGouvemneurs de Provinces et à tous les Administrateurs Communaux.

Annex 1Page 3 of 6

- 30 -

12. Cette Note d'Instruction confie aux communes la responsabilité de l'approvisionnement en eau potablede leurs populations. Les communes sont propriétaires de toutes les installations d'alimentation en eau se trouvantsur leur territoire, à l'exception de celles gérées par la REGIDESO. Le Gouvemement, à travers les services ayantl'hydraulique rurale dans leurs attributions, assurera aux communes l'assistance technique nécessaire pour les aiderà exploiter correctement les infrastructures existantes et à en construire de nouvelles chaque fois que cela seranécessaire, et que les moyens le permettront.

13. Dans chaque commnune sera créée une Régie Communale de l'Eau, dotée de l'autonomie financière.Les modalités d'organisation et de fonctionnement de la Régie sont précisées dans la Note d'instructions diffuséeauprès des Gouvemeurs de Provinces et des Administrateurs Communaux sur l'organisation de l'approvisionnementen eau en milieu rural.

14. La régie communale de l'eau prendra en charge les salaires des fontainiers et autres personnelstravaillant pour la régie, les achats d'outillages et de foumitues, les travaux et la provision de renouvellement. Cesdépenses seront couvertes par le produit des ventes d'eau aux abonnés disposant d'un branchement particulier, etdes redevances perçues auprès des usagers des bomes fontaines publiques, sources aménagées, puits, etc. Laperception des factures d'abonnés est assurée par le fontainier qui relève les compteurs et celle des redevances parle responsable de point d'eau. Ils transmettront la recette au trésorier de la régie qui la déposera au compte ouver^au nom de la régie dans une banque ou autre institution financière. Un contrôle bimestriel sera assuré par lesresponsables (trésorier et président) de la Régie.

15. Le Gouvemement prendra les mesures nécessaires pour que les comptes des régies communales soientvérifiés chaque année par les services concernés du Ministère du Développement Rural et du Ministere del'Intérieur.

16. Dans le cas où plusieurs communes devront se grouper pour réaliser et exploiter en commun un ouplusieurs réseaux d'alimentation en eau, il sera créée une Régie Intemmunale de l'Eau, qui fonctionnera suivantles mêmes principes. En particulier, un Comité Intercommunal d'Usagers sera créé pour la gestion des réseaux.Les relations entre les bénéficiaires des infrastructures hydrauliques et la Régie Communale de l'Eau s&n' diéfiniespar le Règlement de la Régie Communale de l'Eau, le même pour toutes les communes.

En milieu urbain:

17. Au cours de sa séance du 21 Février 1991, le Conseil des Ministres a analysé les problèmes relatifs àla gestion des bornes fontaines en milieu urbain, et a pris la décision de faire payer l'eau aux usagers de ces pointspublics de distribution. Il a décidé qu'une Note d'instructions, à adresser à tous les Gouverneurs de Provinces, auMaire de Bujumbura, et aux Administrateurs communaux, soit élaborée dans les meilleurs délais, comme on l'a faitpour le milieu rural.

18. Cette Note d'instructions confie à la Mairie et aux communes la responsabilité et la gestion des bornesfontaines par la création de Comités d'Usagers par avenue. Chaque Comité d'Usagers sera composé de troismembres.

19. Chaque ménage utilisateur d'une borne fontaine devra participer aux frais de production, de distribution,et de gestion de la REGIDESO, en versant une redevance annuelle minimum de 1.200 FBu au Comité d'Usagers.Cetre participation forfaitaire pourra étre revue en fonction des coGts de la REGIDESO.

20. La totalité des sommes collectées par les Comités d'Usagers seront remises à la Mairie et auxcommunes. Elles permettront de règler les tactutes émises par la REGIDESO. Ces factures correspondront auxconsommations réelles d'eau aux points d'eau publics.

21. Le suivi de cette organisation sera assuré par l'Administration en Mairie de Bujumbura et dans lesCommunes urbaines. Elles devront organiser des réunions de coordination et de mise en place des Comitésd'Usagers par zone et par quartier, et de sensibilisation des populations utilisatrices des bornes fontaines.

Annex 1-31- Page 4 of 6

22. Les modalités d'application de cette Note d'Instructions seront revues et adaptées si nécessuires aprèsune année d'expérience.

C. P_gra_mMe de _%elgpoMent de l'Alimentaton m FA

Zn milieu rutal

23. De nombreux programmes, qualifiés de desserte maximale, viennent d'6tre lancés avec l'aide de différentsbailleurs de fonds:

IQJŽ: Provinces de Kayanza et Karuzi. Les études d'exécution sont en cours et seront terminées à la fin dupremier semestre 1991. 29 adductions pour un montant de 15 millions de dollars E.U.;

Provinces de Gitega et Muramvya. Les études de faisabilité sont en cours de réalisation. Lefinancement prévu pour les travaux est de 9 millions de dollars E.U.;

KfW: Provinces de Ngozi et Muyinga. Les études d'exécution, financées par IDA, sont terminées. Douzeadductions pour un montant de 10 millions D.M.;

Province de Ruyigi. La consultation a été lancée pour les études de faisabilité;

Provinces de Bujumbura et Bururi. La consultation pour l'étude de faisabilité sera lencée au cours del'année 1991.

AGCD: Provinces de Cibitoke, Bubanza et Makamba. La consoltation va être lancée pour les études defaisabilité et d'exécution. Le financement prévu est de 350 millions de Francs Belges.

FED: Province de Cankuzo. Le démarrage des travaux commence à la fin du 2o semestre avec financementitalien;

Province de Rutana. Les travaux de 17 réseaux ( et de 4 réseaux complémentaires en province deCankuzo), seront lancés en 1992 dans le cadre du Vllo FED;

Région naturelle de Mugamba. Les études d'exécution des réseaux sont en cours. Le programmecouvre 3 provinces et 12 communes et le financement disponible est de 1,5 million écus;

Province de Kirundo. Accord de principe pour un programme de couverture totale à lancer dans lecadre du VlIo FED.

UNICEF: Projet Eau et Assainissement (PEA). Aménagement de sources sur l'ensemble du pays, et d'adductionspour desservir les centres de santé et les écoles dans les provinces de Bubanza, Makamba, Cibitokeet Muramvya.

ONG: Des ONG interviennent dans le sous-secteur de l'alimentation en milieu nual.

24. Tous ces programmes devraient permettre de porter le taux de desserte des populations rurales entre 70%et 80% en 1997, sur une population rurale qui sera passée de 5,03 millions en 1990 à environ 5,9 millions.D'autres programmes à venir permettront d'augmenter ce taux de desserte.

Annex 1- 32 - Page 5 of 6

Én milieu Md"

25. Au cours de la même période plusieurs progmmeS de réhabilitation et d'extension de réseaux dedistribution d'eau à Bujumbura et dans les centres secondaires urbains seront réalisds avec les financements dediff6rents baifeurs de fonds:

Villes de Kirundo, Muyinga et Rumonge. Travaux d'extension des réseaux de distribution d'eau dansces trois communes Début des travaux prévu ri Io semestre 1991 pour un montant de 5,6 miUiondde DM;

Villes de Ruyigi, Karuzi, Buhiga, Mabanda et trois quartiers autour de Bujumbua. Programme derenforcement et d'extension des systOmes d'alimentation en eau. Lancement des études de faisabilitéen Mars 1991. Financement affecté à l'étude 50.000 DM;

Villes de Bururi, Cibitoke et Makamba. Programme d'amélioration de l'alimentation en eau potable.La consultation pour l'étude de faisabilité sea lancée avant la fin de l'année 1991.

CCCE Réhabilitation de l'ancien réseau du centre de la ville de Bujumbura. La définition de l'opération seraeffectuée au cours de l'année 1991.

26. Tous ces programmmes devraient permettre de poner le taux de desserte de la population urbaine à98 %, en am6f rant en m8me temps les conditions de service offertes aux populations déjà bén£flciaires des réseaux.

Reue Annuelle du ProYmme Sectoriel d'Investissenent

27. Le programme d'investissement du secteur de l'eau et de l'assainissement sera revu chaque année dans lecadre de l'examen global des investissements de l'Etat, en vue d'assurer que 'Ous les investissements du secteurs'insrent bien dans le Programme d'Investissements Publics (PIP).

Coordination du Seteu

28. Pour assurer une bonne coordination du secteur, la Commission Nationale de l'Eau et de l'Energieorganisera chaque année, à date fxe, une table ronde des bailleurs de fonds int6ress8 par le secteur. Cette tableronde r6unira en priorit£ les financiers et cofinanciers des projets en cours, en vue de leur supervision, mais seraouverte aux autres bailleurs de fonds potentiels.

D. PLAN D'ACTION

29. Pour mettre en place la poL que sectorielle définie ci-dessus, le Gouvernement a déjà pris les mesuressuivantes:

(1) Décembre 1990.Préparation, signature et diffusion aux autorités provinciales et communales d'une Note d'instructions fixantles modalit6s d'organisation et de gestion de l'approvisionnement en eau en milieu nural;

(2) Janvier 1991.Cr6ation des premiers Comitds Communaux d'Usagers, selon les dispositions arrêtées dans la Noted'instructiorns;

(3) F6vrier 1991.Discssion du projet de Lettre de Politique Sectorielle au niveau de la Sous-comission Nationale de l'Eau;

Annex 1-33- Page 6 of 6

(4) Mai 1991.Signature de la présente Lettre de Politique Sectorielle.

30. Pour continuer la mise en place de ladite politique le Gouvemnement prendra lec mesures ci-après:

(1) Juin 1991LIncement d'une étude tarifaire pour les tarifs REGIDESO;

(2) Juin 1991Signature et diffusion aux autorités concernées d'une Note d'Instructions fixant les modalités de gestiondes bornes fontaines publiques en milieu urbain;

(3) Novembre 1991Organisation et tenue d'une conférence des Bailleurs de Fonds intéressés par le secteur;

(4) Déoembre 1991Augmentation après étude des tarifs d'eau pratiqués actuellement par la REGIDESO, pour les abonnés dontla consommation est supérieure à vingt m3 par bimestre;

(5) Mars 1992Après une campagne intense de sensibilisation de la populaton, mnise en place par la REGIDESO d'unprogramme de coupures sytématiques de l'eau pour les abonnés en retard de paiement de plus de troismois;

(6) Juin 1992Trnsfert au cas par cas par la REGIDESO aux communes concernées des adductions d'eau des centresnon compris dans les 23 centres définis par le décret No. 100/13 du 11 Mars 1986;

(7) Juillet 1992Examen avec la Banque Mondiale d'une proposition de nouvelle grille de tarification de l'eau de laREGIDESO et de son échéancier d'application;

(8) Septembre 1992Proposition d'un programmme d'assinissement pour le milieu urbain et le milieu rural: organistioninstitutionnelle, répartition des secteurs, développement des progammes;

(9) Septembre 1992-Septembre 1995Mise en oeuvre progressive de la nouvelle grille tarifaire pour la REGIDESO;

(10) Décembre 1993Promulgation d'un décret reprenant les dispositions des Notes d'Instructions (milieu urbain et milieu rura),améliorées par l'expéience acquise après plusieurs années de mise en oeuvre, et fixation définitive desresponsabilités de DGHER et REGIDESO;

D I""TER SPPLY SECTOR PRNOECT

AFURICA ItE61UVater _ y *nd Ssnittion Basic Indicators

(19E7

No Country Population Density GNP per Water Access Sanitation access Infant LifeCop. Urban Rural Urban Rurat Mort. Expect.

(million) Pop/R2 USS X z X X (per /000) (yeors>

1 enin 4.3 38.1 300 30 15 20 5 115 50

2 Botsw.m 1.1 1.9 1030 90 65 70 25 71 59

3 Burkina Fso 8.3 30.3 170 50 30 30 5 144 47

4 Burundi 5.0 177.5 240 90 35 35 15 119 48 41

S Cote d'Ivoire 11.1 34.3 750 90 40 35 10 105 536 Ethiopia 44.8 36.6 120 70 5 20 n.a. 168 47

7 uadagascar 10.9 18.6 200 75 10 60 5 109 54

8 Niger 6.8 5.4 280 50 30 35 10 140 45

9 Rwanda 6.5 248.1 310 70 60 60 80 124 49

10 Sengat 7.0 35.5 510 60 30 30 10 137 48

11 Ugandb 15.7 66.3 260 60 10 60 30 108 4812 Zai,i 7.2 9.5 240 70 30 90 50 84 53

Ib

URTER SPPLY SECToR PROJECT

Norbidity ad Nortatlity Rates(1980 to 1988>

1980 1981 1982 1983 1984 1985 1986 1987 1988T M T M T M t M T M T M T M T M T N

Chotera 1930 28 582 11 420 4 512 35 180 10 259 15 241 6 523 23 571 43

Typhus 101 9 92 2 43 - 42 - 22 - 9 - 6 - 2 - 3 -

Hepatitis 5399 20 3250 21 3251 16 4689 29 3467 21 2474 23 1745 15 2119 22 3181 33

Typhoid Fever 39 3 91 4 82 2 187 10 77 2 64 2 83 5 62 1 158 6

Amoebtasis 13480 118 33157 489 20823 273 23635 447 32028 441 30802 337 30821 320

Dlarrhoea 31128 83 32977 127 52462 301 57387 149 62241 43 65206 74 106292 147 97203 141 110910 285

Poti fcelitis 43 1 102 5 29 - 37 - 46 25 1 16 - 9 12 -

Nalaria 127802 77 169869 91 157022 98 200487 137 188230 160 226857 240 247866 293 290206 376 355038 410

Sitharziosis 1287 - 1618 4 1359 2 2011 1 2208 1 2677 1 2891 2 2552 - 2807 2

Sources: Ninistry of heatth (Statistics of the Department of Epidemiotogy)

T: MorbidîtyM: Mortatity

Ix

BTER SUPPILY SECTR PUoJECT

Prement Sittstlon in the Rmtra Sub-Sector (1969>

Provinre Superficy Iater Length Standptpes House Protected Velts Rurol Poputation Population Level ofSystema of pipes Connections Springs Population Density Served Service

(Ibc2 (No) (km) (No) (No) (<o) (No> <K>

1 suj-u¨ra 1321.4 32 222.68 267 223 1129 402,880 304.9 210,130 52.2X

2 Subeam 1072.6 13 119.86 154 88 437 201,415 187.8 92,642 46.0%

3 Bururi 2441.4 49 283.69 316 256 897 376,278 154.1 190,664 50.7X

4 Cankueo 1938.8 13 110.16 130 61 394 134,524 69.4 81,425 60.5X

5 Cibitoke 1639.4 19 194.23 220 145 806 240,239 146.5 156,467 65.1S

6 Gitega 1989.4 33 203.23 303 332 949 569,710 286.4 195,161 34.3X

7 Karuzi 1457.6 20 84.28 132 93 554 274,339 188.2 103,215 37.6X

8 Kayonza 1240.8 22 163.62 175 158 1243 462,377 372.6 204,207 44.2X

9 Kirundo 1710.5 8 116.37 112 100 627 12 380,556 222.5 110,024 28.9X

10 akaob 1972.4 il 98.70 66 6 481 159,416 80.8 78,252 49.1X

Il Murvya 1546.0 34 196.02 248 220 855 444,385 287.4 169,704 38.2X

12 uyinga 1829.4 9 130.86 101 64 454 332,664 181.8 82,899 24.9X

13 mgozi 1466.2 16 70.09 116 19 912 506,559 345.5 146,385 28.9K

14 Rutana 1958.6 22 143.53 165 19 397 30 1951,32 99.6 93,292 47.8X

15 Ruyigi 2365.0 37 206.03 260 137 837 55 217,838 92.1 176,683 81.1X

Total 25949.5 338 2343.33 2765 1921 10972 97 4.898 312 188.8 2,091.150 U.7X

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Annex 5-38 - Page 2 of 4

2. Provinces of N-azi and Muyinga (KfW financing)

2. For these provinces the principal characteristics of the systemas are smumarized in the following table:

CQm Syste. Aqueduct DistributionTanks Standpipes Conections

(km>

Proince of Nuozi

Tanpra Boib 15.30 1 32 22Nmba Bhanda 5.70 1 19 13w.uma Cahi 11.85 20 19 13

Igozi CigatiJe e tN 9 8 5Nyarenz/Mraaranara Gikomro 34. 56 55 39Kiraja Ktbuay 11.05 22 21 15Ngozl Nivo 6.60 14 13 9Narmnuars Rubaya 7.45 9 8 8Ruhororo Ruhororo 18.20 8 7 5

Province of awir.

Gashoho Gashoho 3.60 1 8 6Gasorwe Karama 13.65 14 13 9Muakiro Kiyanza 18.15 12 13 9Butihinda/Gateranyi hugano 34.60 25 22 16Buhinyusat/uynga ikroyoyo 30.25 18 17 12

3. Provinces of Gitega and Muamnvya (IDA FinancinQà

3. In these provinces the project would finance:

(a) Feasibily study to select water supply systems to be implemented. The selewtion would be based onthe investment cost per capita and on capacity of the population to cover operation, maintenance andreal costs for the system;

- () Final design for selected systems;(c) Pipe supply and construction of systems (for about 250 km of pipes) and supervision of works.

4. Provinces of Cibitoke. Bubanza and Makamba (AGCD FinEicing)

4. In these provinces the project would finance on the same biais for selection of the systems:

(a) Feusibily study to select water sply systems and final design for selected systems;(b) Pipe supply and constcion of syrstens (for about 250 km of pipes) and supervision of works.

B. IZROELMflQN AND DEVELOPMENT OF SPRINGS

S. Tii project includes the protection and development of 3,000 Springs. These works will be carried outby UNICEF and NGOs, and include a program of sensitization for the populdion and on-the-job training forcommunal attendants in charge of maintenance of these springs.

C. INSTI ITUTIDOKD.WIL

6. Thi puwpose of this component is to consolidate the services provided by Institutions operating in thesub-soctor and puticularly tIhe DHER, the Project Unit, tie Communes and the communal water utilities.

1. Proiect Unit (PAEMR)

7. lTh PABMR would assume the sane responsibilities as in the Rural Water Supply Project (Cr 1625-BU) u ther tiaudtority of DGIER. The project would finance all the personnel, equipment, operating aidtiang expmnses of tih PAEMR operations.

Annex 5-39- Page 3 of 4

8. The composition of the PAEMR team including technical assistance would be:

Position o urat Finaroinoe

Coordination Unit.ProJect Director 72 m..Coordinator advisor 1 TA ta 60 . IDA.Accountant 1 72 m..Administrative Agent 1 72 M..Secretary 1 72 m..Driver 1 72 M.

Maintenance Assistance Unit.Maintenance engineer 1 TA /a 60 m. ACCO.Counterpart 1 72 m..Water engineer 5 72 M.

Accounting Control Unit.Accountant 4 48 m.

Sonsitization and animation Unit.Community development expert 1 TA ta 36 m. IDA.Coumterpart 1 48 m..Sensitization term 8 48 m.

et: Technicat assistant.

9. The Project includes acquisition of light vehicles (13), micro-computers (4) and supply of officeequipment.

10. The training env.saged comprises the following:

(a) Training abroad for tie Project Director (2 mtonhs) and the maintenance engineer counterpart (6months) to cover respectively tie following aspects: Project management and maintenance of watersupply systems; and

(b) Local training for accountants (4x2 months) to cover receipts and expenditures, billing and collection,and auditing; local training for maintenance engineers (5x2 months) to cover operation andnaintenance of water systems (Collection, treatment, storage and distribution).

2. WHER

il. 'Me proposed actions are intended to increase the efficiency of the DOHER in providing equipment,appropriate technical assistance and training. The Project includes:

(a) Supply of light vehicles (5), micro-computer equipment (2) and topographic equipment;(b) Civil engineer (4 years) provided by AGCD to the force account works Division of DHA;(c) Training abroad for technical high level staff (5 months) to cover the following aspects: Planning of

works by objectives, financial management of projects and management of water resoures and ofwater supply systems; trsining abroad for the administratve and financial director (6 months) to coverbudgeting, inventory magement, accountng md financial management; training on-the-job for 3water engineers with consultants in charge of feasibility mad final design studies; ad

(d) Sector organization study to define responsibilities betwea tIhe various projects ad procedures to befollowed by the different agencies involved (8 months).

3. Comnmunes and Communal Water Supply Utilities

12. The project would include:

(a) annual information and exchange of view seminars for communal administraors and, chairmen andt_usr of user's association; and

(b) local training on operation and maintenance of water supply systems for about 100 communaltendants (138 months); local training mad sensitization on management of the systems for about 60

chairme antd teasur of user's association (40 months).

Annex 5

-40- Page 4 of 4

4. RUGIDIES

13. Two sis (TORs il Animx 14) would bo cunried uader the project:

(a) Updang of the ubn waoe tauiffs (6 months); mmd(b) Water supply master pla for Bujumbur (20 montbs).

-UIAiTER UWPLY SECTU ftOJE

lq>pntatioen Schedate

Financfm 1990 1991 1992 1993 1994 1995 1996 1997

l.Ugozi, Nuytnga.Final déstn Cr 1625U ........

'ffmentsupptyKfM ..4 O 00000000:C?¢ wrks Kfw ... .. oooo . n * ^* 2.KanzWM,arz

2.ndes Cr 1625U ..........Ec DA ..... 00000 000000CvIl oks IDA ........ +ooooooo_****

3. Giteg I i ty studya IDA-PPF ....... ...Finsl deslgI .. ......

IDA ++.++ _o oow 000 -*4.Cibi oke Bubenza Makamia

.Feasibîtty studyAGCD 44... -... ..F,nal deslgn AGCD .

6.Springs develo .ent IDA * _ _ _ _ *****7.Coordînation (PAENR)

.Technical assistoeio AG6/IDA ..Sensitîzation IDA

.Trainne IDA ....... ... ..... ...............Studies, audlits IDA........B.Strenhthenin of DO6ER AGCD/IDA ............ ............ ............9.RE61DES9 Studies

.Tarlff study ~ IDA-PPF 444.. ....

.Bujuzb. Master Plan IDA .... .........10.Supervision A=CD/IDA"Kfw mumuuuumummu U=uuomuc=zmmn su3 _3 _=

+++*4+ sidding process; osooso Equipmmnt suppLy; - Civil works; ------ Studies, Technicol assistance Training; - S= Supervision.

X

UATER SUPPLY SECTOR PROWECT

PROVICES OF KATAIZA * KAbUZI

Detailed Cost Estiate(Fgu *iltion)

1990 1991 1992 1993 1994 1995 1996 1997 TotatSyste Forelgn Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local TotalProvînce of ramPrBwirm f Kauu 2.1 11:1 8.9 13.2 8:9 22.12 Giise 4.2 19.7 lS S 23.9 15.5 39553 ssare 7.2 23.7 16.5 30.9 16.5 47.34 Mwultru 3.4 12.0 8.6 15.4 8.6 24.05 Rerera 3.6 18.5 14.9 22.1 14.9 37.06 Sbcgue 2.7 6.6 3.8 8.1 8.1 17.4 11.9 29.37 Iuh nga 7.9 7.9 20.6 20.6 36.4 20.6 57.1a R1xaigu 2.2 6.4 4.2 4.2 4.2 12.8 8.4 21.29 Rano 3.9 3.9 11.2 11.2 19.0 11.2 30.210 Rusezi 4.2 4.2 3.6 3.6 10.9 10.9 23.0 14.6 37.6Il Kabarore 1.0 1.0 4.5 4.5 6.5 4.5 11.012 Canpazi 18.5 18.5 13.5 13.5 13.5 13.5 63.9 26.9 90.813 Ruwv o 5.1 5.1 3.9 3.9 11.6 11.6 25.7 15.5 41.314 Nikani 2.5 2.5 3.1 3.1 7.1 7.1 15.1 10.2 25.315 Gatara N 60.0 77.8 17.7 34.8 34.8 17.1 17.1 189.7 69.6 259.316 Gatara S 73.2 103.5 30.3 38.7 38.7 29.0 29.0 244.4 98.0 342.417 Butaganzwa 9.2 9.2 5.4 5.4 12.7 12.7 36.6 18.2 54.818 Rubirizi 39.5 39.5 22.5 22.5 15.0 15.0 116.5 37.5 153.9

Province of karuzi19 KG!gange 1.7 7.2 5.5 8.8 5.5 14.3209 Oaro 2.2 12.2 10.0 14.5 10.0 24.521 ugenyuzi 47.5 55.2 7.7 15.0 15.0 117.6 22.7 140.422 Cantzikiro 2.3 14.1 11.8 16.4 11.8 28.223 Rusaza 3.8 7.7 3.8 10.3 10.3 21.8 14.1 35.924 ZUb-2o 2.9 15.9 13.0 18.8 13.0 31.725 Bi6a'Gr-a 7.0 11.2 4.2 11.2 11.2 29.5 15.4 44.8 126 Gasera 1.3 8.4 7.2 9.7 7.2 16.9Z7auweisa 3.5 7.3 3.8 11.4 11.4 22.3 15.2 37.5 5'28 raba 17.3 24.4 7.1 16.5 16.5 58.2 23.6 81.829 Gitang 3.3 3.3 12.6 12.6 19.2 12.6 31.7 Sub total 343.3 537.7 194.4 251.2 251.2 117.0 117.0 1249.1 562.5 1811.7 1

Final Design ~aSupervision 31.1 7.8 40.2 10.0 18.7 4.7 90.0 22.5 112.5Physical Continsencles 34.3 56.9 20.2 29.1 26.1 13.6 12.2 133.9 58.5 192.4Pr ce Contingpncles 49.1 83.1 50.4 43.4 88.0 24.8 51.5 200.3 189.8 390.1g

Total 426.7 708.8 272.7 363.9 375.3 174.1 185.3 1673.4 833.3 2506.7%a Financed under Second Rural Vater Supply Project (Credit 1625-BU)

Price value of June 1990.Breakdob erjatmpry

(F8u dtlien)-

1990 1991 1992 1993 1994 1995 1996 1997 TotalCategory Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign tocal Foreign Locel Foreign Local TotalEguipment Supply 343.3 343.3 686.6 686 6Civit vorks 194.4 194.4 251.2 251.2 117.0 117.0 562.5 562.5 1125.1finat Oesign \aOSupervision 31.1 7.8 40.2 10.0 18.7 4.7 90.0 22.5 112.5 (D CSub total 343.3 568.8 202.2 291.3 261.2 135.7 121.7 1339.1 585.0 1924.2 xPhysical Contingencies 34.3 56.9 20.2 29.1 26.1 13.6 12.2 133.9 58.5 192.4 oPrice Contingenles 49.1 83.1 50.4 43.4 88.0 24.8 51.5 200.3 189.8 390.1 .>

Total 426.7 708.8 272.7 363.9 375.3 174.1 185.3 1673.4 833.3 2506.7 5'\a Financed under Second Rural Vater Supply Project (Credit 1625-BU)Price value of June 1990.

MATER SPPLY SECTOR PROJECT

IhSTITUTIOl BUILDING

Detailed Cost Estiîate(FBu aillion)

1990 1991 1992 1993 1994 1995 1996 1997 TotalForelgn Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Totalà. ProJect unit (PAM)

1 Direction PAEHPersoeml 1.1 4.5 4.5 4.5 4.5 4.5 4.5 28.0 28.0TechnicaL assistonce 32.0 1.7 32.0 1.7 32.0 1.7 32.0 1.7 32.0 1.7 159.9 .4 168.3Equip.mnt 15.6 1.6 15.6 1.6 17.2Tr inina 0.6 0.6 0.6 0.6 0.6 3.0 3.0Ceratin expoenses 2.2 8.6 8.6 8.6 8.6 8.6 8.6 53.9 53.9Studies/audit 5.8 5.8 5.8 5.8 37.0 37.0 97.4 97.42 Nuintenm%e AissistUE I UnitPersomel 1.7 7.0 7.0 7.0 7.0 7.0 7.0 43.6 43.6lecrhnical assistu o 17.2 0.9 17.2 0.9 17.2 0.9 17.2 0.9 17.2 0.9 86.2 4.5 90.8Equipeent 14.0 14.0 14.0Training 1.5 0.9 1.5 0.9 1.5 0.9 1.5 0.9 1.5 0.9 7.3 4.5 1158Operatirg -xpe-s s 1.7 6.7 6.7 6.7 6.7 6.7 6.7 42.0 42.03 Acountit Centrrl unitPersonnl 5.0 5.0 5.0 5.0 19.9 19.9Equipcent 5.0 5.0 5.0Training 0.6 0.6 0.6 0.6 2.3 2.3Operating expenses 2.5 2.5 2.5 2.5 10.0 10.04 Sensitization UnitPersomnel 1.2 7.2 7.2 7.2 7.2 29.8 29.8Technical assistance 3.6 0.2 28.9 1.5 28.9 1.5 28.9 1.5 90.3 4.8 95.0Equipment 10.0 10.0 10.0Operating expenses;3. 1.0 6.0 6.0 6.0 6.0 25.0 25.0

_Sub-t_ta 3.6 9.1 130.6 54.6 86.0 53.0 86.0 53.0 57.1 51.5 88.3 30.3 37.0 26.8 488.6 278.2 766.8B. DGEE

Technical assistance 4.3 0.2 16.4 0.9 16.4 0.9 16.4 0.9 16.4 0.9 16.4 0.9 86.2 4.5 90.8Equiplent 17.8 17.8 17.8Training 4.4 0.8 5.2 0.9 5.2 0.9 14.8 2.5 17.3Studies 3.4 20.' 3.4 3.4 3.4 3.4 37.3 37.3 .cSuIbtotal 4.3 0.2 37.5 0.9 41.3 1.6 24.9 1.7 24.9 1.7 19.7 0.9 3.4 156.1 7.0 163.1 uC. Ccunes *nd Coma.nL VoLter Utilities

Training 6.2 6.2 6.2 6.2 24.9 24.98mb-total 6.2 6.2 6.2 6.2 24.9 24.9D. GIE6"SO Studies

Tarlff Study PPFNaster Plan for Buju*ur 16.ô 39.3 56.1 56.1Subrgtotsl 16.8 39.3 56.1 56.1

Total 7.9 9.3 184.9 61.7 166.6 60.8 110.9 61.0 82.0 59.4 108.0 31.1 40.3 26.8 700.8 310.1 1010.9PhyIscal contingenies 0.5 6.2 2.5 2.4 2.4 2.4 i.5 1.5 6.2 13.2 19.5Price contingencles 0.6 0.7 24.9 9.6 23.0 14.6 16.6 19.7 14.8 24.1 24.5 15.4 11.3 15.7 115.7 99.8 215.6

Total 8.5 10.5 216.0 73.9 189.7 77.8 127.5 83.0 96.8 85.9 132.5 48.1 51.7 44.0 822.7 423.2 1245.9Price value of June 1990.

Breakdam Catem y(Rh million) , d >

1990 1991 1992 1993 1994 1995 1996 1997 Total >=Category Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Forelgn Local Foreign Locel Foreign Local Foreign Local Total CD MTechnical assistance 7.9 0.4 94.5 5.0 94.5 5.0 94.5 5.0 65.6 3.5 65.6 3.5 422.6 22.2 444.8 NEquipment 62.4 1.6 62.4 1.6 64.0 S.Training 2.1 7.7 6.5 8.4 7.2 8.6 7.2 8.6 2.1 0.9 25.0 34.2 59.2 0operating expenses 8.9 47.4 47.4 47.4 47.4 26.8 26.8 252.1 252.1Studies/audit 26.0 65.7 9.2 9.2 40.3 40.3 188.7 190.7 r.Sub Total 7.9 9.3 184.9 61.7 166.6 60.8 110.9 61.0 82.0 59.4 108.0 31.1 40.3 26.8 700.8 310.1 1010.9Physical contingencies 0.5 6.2 2.5 2.4 2.4 2.4 1.5 1.5 6.2 13.2 19.5Price contingencies 0.6 '.7 24.9 9.6 23.0 14.6 16.6 19.7 14.8 24.1 24.5 15.4 11.3 15.7 115.7 99.8 21S.6

Totat 8.5 10.5 216.0 73.9 189.7 77.8 127.5 83.0 96.8 85.9 132.5 48.1 51.7 44.0 822.7 423.2 1245.9Price value of June 1990.

MTER 19. SECT P ROECPRMMINES OF 1021. UUIISA GITEGA. BOADVT, CIUITOKE. EU8AZ 519 AMoeAU

Detated Cost Estioate(FU mnil0ion)

1990 1991 1992 1993 1994 1995 1996 1997 TotalForeign Local Forelgn Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Total6. mlqlr u.

E if% = t Suçy 264.7 264.7 264.79upe Wi rb* 22 48.8 45.1 146.3 135.4 48.8 45.1 243.9 225.7 469.6Superviuion 22.4 67.3 22.4 112.2 112.2Sub totnl 336.0 45.1 213.6 135.4 71.2 45.1 620.8 225.7 846.5it i Cit st u1 Md

Fineal d sWgn 16.8 67.3 84.2 84.2AdductionsE ig 1 ., jAy 225.0 ~~~~~~~~~~184.1 .09.1 409.1,C, Wi trUbf 225.0145.0 121.5 145.0 121.5 72.5 60.7 362.6 303.7 666.39Sçervision 50.5 50.5 25.2 126.2 126.2Su total 16.8 67.3 225.0 379.6 121.5 195.5 121.5 97.8 60.7 982.0 303.7 1285.7

c CibltaÊne Mmu.mi U.k*A"Feasibilhty 4 Finml design 67.5 96.4 28.9 192.8 192.8Adàrttlon

.Equint Supply 414.9 414.9 414.9.Clvi Uorka 74.3 63.0 148.5 125.9 148.5 125.9 371.3 314.9 686.2 8Supervision 25.2 50.5 50.5 126.2 126.2 .Sub total 67.5 96.4 28.9 514.4 63.0 199.0 125.9 199.0 125.9 1105.3 314.9 1420.2 .&

Equipesmn 71.3 71.3 71.3Civit Uors 10.7 10.7 21.4 21.4 21.4 21.4 21.4 21.4 21.4 21.4 10.7 10.7 106.9 106.9 213.8Sub total 81.9 10.7 21.4 21.4 21.4 21.4 21.4 21.4 21.4 21.4 10.7 10.7 178.1 106.9 285.0Plhsical continhncies 55.2 7.8 24.1 22.5 80.9 15.2 49.9 26.9 31.5 26.9 8.3 7.1 249.9 106.4 356.3Price contingicles 5.2 76.2 9.6 49.2 41.4 136.8 45.0 117.5 115.1 101.5 139.8 32.7 43.5 519.0 394.3 913.3

laau l72.6 662.6 73.2 404.5 220.6 1049.6 189.7 767.4 410.8 S48.9 435.4 149.5 122.1 3655.2 1451.8 5107.0Price value of Jung 1990

_reun by Category(Fou lion>

1990 1991 1992 1993 1994 1995 1996 1997 TotalForelgn local Foreign Local Foreign Local Forelgn Local Forelgn Local Forelgn Local Foreign Local Foreign Locel Foreign Local totalCivil works 59.5 55.8 167.7 156.8 144.4 129.5 314.9 268.8 314.9 268.8 83.2 71.4 1084.7 S51.1 2035.8Equlpeent 336.0 639.9 184.1 1160.0 1160.0 >DConsulttin sericees 67.5 135.7 163.6 47.7 101.0 101.0 25.2 U41.(6 641.6

Sub total 67.5 531.1 55.8 331.3 156.8 832.0 129.5 600.0 268.8 415.9 268.8 108.5 71.4 28Fo 3 951.1 3S37.4 XPhvsical contingmncles 55.2 7.8 24.1 22.5 80.9 15.2 49.9 26.9 31.5 26.9 8.3 7.1 2o9.9 106.4 356.3 vPrice contingencles 5.2 76.2 9.6 49.2 41.4 136.8 45.0 117.5 115.1 101.5 139.8 32.7 43.5 519.0 394.3 913.3

Total 72.6 662.6 73.2 404.5 220.6 1049.6 189.7 767.4 410.8 54U.9 435.4 149.5 122.1 3655.2 1451.8 5107.0 '

Price value of5june 1990

WITR sWPLY SECTR PROIECTOta iled Cest Ectiete

Bre.kda.m by lear ad bLy Coqponntae Coït (FDu illion)

1990 1991 1992 1993 1994 1995 1996 1997 TotalForeign Loeal Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Locul Foreign Locat TotalA. RMURIL IBTEN ULN? SSI

Provinces of:Prgoin of: 313.5 45.1 146.3 135.4 48.8 45.1 508.6 225.7 734.32 Kruui cn Kayana 343.3 537.7 194.4 251.2 251.2 117.0 117.0 1249.1 562.5 1811.73 61te9a ai twya 225.0 329.1 121.5 145.0 121.5 72.5 60.7 771.7 303.7 1075.34 Ci%oe~az iNka" 489.2 63.0 148.5 125.9 148.5 125.9 786.3 314.9 1101.15 feaslbtt ti &final design studies 67.5 113.2 96.2 277.0 277.06 S22ervlsion n .4 98.4 7.8 87.9 10.0 119.7 4.7 101.0 25.2 454.7 22.5 477.2

Sut-totat 67.5 792.5 45.1 878.7 337.6 1102.0 369.3 714.3 369.1 394.6 247.4 97.8 60.7 4047.3 1429.3 5476.6a. W83GSS 81.9 10.7 21.4 21.4 21.4 21.4 21.4 21.4 21.4 21.4 10.7 10.7 178.1 106.9 285.0C. IUSTIMIUIL UtuDIUB

1 Project Uhit (PA M )Coordination Unit 3.3 54.0 16.4 38.4 14.8 38.4 14,8 38.4 14.8 69.6 14.8 37.0 13.1 275.8 91.9 367.6Naintenance Assistance anit 3.4 32.7 15.5 18.7 15.5 18.7 15.5 18.7 15.5 18.7 15.5 13.7 107.5 94.6 202.1Acco mtiq control unit 5.0 ô.0 8.0 8.0 8.0 5.0 32.2 37.2Sensitization Unit 3.6 2.4 38.9 14.7 28.9 14.7 28.9 14.7 13.2 100.3 59.6 159.92 DGH£R 4.3 0.2 37.5 0.9 41.3 1.6 24.9 1.7 24.9 1.7 19.7 0.9 3.4 156.1 7.0 163.13 Couut mater utilities 6.2 6.2 6.2 6.2 24.9 24.94 REGIDE9DUpdatin8 tariff study PPFWater Supply *ter plan 16.8 39.3 56.1 56.1

Sub--totat 7.9 9.3 184.9 61.7 166.6 60.8 110.9 61.0 82.0 59.4 108.0 31.1 40.3 26.8 700.8 310.1 1010.9 8efinmmcs of FPF 156.8 156.8 156.8

13o1l 232.2 9.3 1059.4 117.5 1066.7 41°.8 1234.3 451.6 817.7 449.9 523.9 299.9 148.8 98.2 5082.9 1846.3 6929.2 1Phfsical ContfawencIes 0.5 95.8 10.4 81.0 45.1 110.0 43.7 63.5 41.4 31.5 28.4 8.3 8.7 390.0 178.1 568.2Price Continglences 5.8 0.7 150.1 19.2 155.3 106.3 196.8 152.6 157.1 190.7 126.0 155.2 44.0 59.2 835.1 683.9 1519.1

lot n237.9 10.5 1305.3 147.1 1303.0 571.2 1541.0 648.0 108.3 682.0 681.4 483.6 201.1 166.1 6308.1 2708.4 9016.5Price value of Ja 1990.

8reatdaai bi le r*d bC tgorySasm Cnt <Nlu Million>

1990 1991 1992 1993 1994 1995 1996 1997 TotalForeign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign tocal Foreign Local Foreign Local TotalEsliemnt, Pipes 741.7 1.6 343.3 639.9 184.1 1908.9 1.6 1910.5Cvf IbMrks 59.5 55.8 362.1 351.2 395.6 380.6 431.9 385.8 314.9 268.8 83.2 71.4 1647.2 1513.7 3160.9Technical Assistane 7.9 0.4 94.5 5.0 94.5 5.0 94.5 5.0 65.6 3.5 65.6 3.5 422.6 22.2 444.8Training 2.1 7.7 6.5 8.4 7.2 8.6 7.2 8.6 2.1 0.9 25.0 34.2 59.2Operating Expenses 8.9 47.4 47.4 47.4 47.4 26.8 26.8 252.1 2S2.tî Consultine Services 67.5 161.7 260.3 7.8 97.1 10.0 128.9 4.7 141.3 65.6 922.4 22.5 944*gRefinancing of PF 156.8 156.8 ID

Si*.total 232.2 9.3 1059.4 117.5 1066.7 419.8 1234.3 451.6 817.7 449.9 523.9 299.9 148.8 98.2 5082.9 1846.3 6929.2&xPhysical Contie-pncles 0.5 95.8 10.4 81.0 45.1 110.0 43.7 63.5 41.4 31.5 28.4 8.3 8.7 390.0 178.1 568.aPrice Contingencles 5.8 0.7 150.1 19.2 155.3 106.3 19b.8 152.6 157.1 190.7 126.0 155.2 44.0 59.2 835.1 683.9 1519.1

Total 237.9 10.5 1305.3 147.1 1303.0 571.2 1541.0 648.0 1038.3 682.0 681.4 483.6 201.1 166.1 6308 1 2708.4 9016.SPrice value of ârm 1990.

ATER SUPPLY SECTOR PROJECT

Caracteristice of the Syste

Length of Standpipes Standpipes Population (1990) lnvestment (value June 1990)Pipes Per Km Per Total Per Km Per irnab.

NO. Ccmue Vater System (m) (No) (No) Served Per Km Standpipe (FBu"illioen) (FBuJC00) (USS)

C11tOE OF KYAUTZA

t Matonwo BSisasue 6,700 12 1.79 2,765 413 230 28.58 4.27 10.34 62.72 Matongo Gitwe 13,200 20 1.52 3,375 256 169 50.94 3.86 15.09 91.53 Natongo 6asare 12,600 25 1.98 4,305 342 172 60.89 4.83 14.14 85.74 Nuruta unanira 4,300 13 2.71 2.120 442 163 30.88 6.43 14.57 88.3S Muruta Remera 8,800 26 2.95 4,525 514 174 47.81 5.43 10.57 64.16 Nijanga mboge 11,200 12 1.07 2,595 232 216 38.64 3.45 14.89 90.27 Njanga WMhanga 16.750 29 1.73 5,405 323 186 75.59 4.51 13.99 84.88 Ranso Rtbungu 6,150 10 1.63 1,815 295 182 27.78 4.52 15.31 92.89 Rango Rango 7.900 10 1.27 1,775 225 178 40.06 5.07 22.57 136.8

10 Kabarore Rugazi 12,100 21 1.74 3,590 297 171 51.31 4.24 14.29 86.6Il Kabarore Kabarore 3,000 7 2.33 1,235 412 176 14.71 4.90 11.91 72.212 Kayanza/Nuruta Campazi 19,600 43 2.19 7,290 372 170 120.59 6.15 16.54 100.213 Kayenea/Nuruta Ruvomo 13,150 17 1.29 2,900 221 171 56.17 4.27 19.37 117.414 Cahoeno Mikoni 6,800 12 1.76 1,940 285 162 34.53 5.08 17.80 107.915 GataraI/ahonbo 6atara Nord 48,050 122 2.54 19,885 414 163 338.54 7.05 17.02 103.216 Catara/Natoabo 6atara Sud 57,400 )92 3.34 32,470 566 169 448.34 7.81 13.81 83.71' Butaganzwa Butaganzwa 12,800 32 2.50 5,965 466 186 73.71 5.76 12.36 74.918 Butaganzwa/Rfago Rubirizi 33,700 48 1.42 9,680 287 202 201.79 5.99 20.85 126.4

Sub totat 294,700 651 2.21 113,635 386 175 1,740.86 5.91 15.32 92.8

PRMwiE OF KAMRI

19 Shombo Klyange 2,900 8 2.76 1,410 486 176 18.49 6.38 13.11 79.520 Shombo Gaharo 7,300 18 2.47 3,125 428 174 31.63 4.33 10.12 61.321 Bugenyuzi Buenyuzf 22,550 21 0.93 3,640 161 173 179.16 7.95 49.22 298.322 Bugenytuzl Canzikiro 9,200 17 1.85 3,060 333 180 36.49 3.97 11.92 72.223 Gihogazi Ruzamaza 13,150 15 1.14 2,580 196 172 47.39 3.60 18.37 111.324 Gihogazi Nugogo 8,500 17 2.00 3,305 389 194 41.00 4.82 12.41 75.225 Mutuba Bibora 11,300 19 1.68 3,290 291 173 58.7-9 5.20 17.87 108.326 Nutuda Gssera 3,950 10 2.53 1,785 452 179 21.86 5.53 12.25 74.227 Nyabikere Rugwiza 11,750 20 1.70 3,505 298 175 49.58 4.22 14.15 85.828 Nyabikere Taba 21,650 30 1.39 5,725 264 191 106.29 4.91 18.57 112.529 Bhiga Gitanga 11,400 10 0.88 2,085 183 209 42.23 3.70 20.25 122 .7

Sub total 123,650 185 1.50 33,510 271 181 632.91 5.12 18.89 114.5 Xx

Total 418,350 836 2.00 147,145 352 176 2,373.77 5.67 16.13 97.8 Co

tlTER SUPPY SECTOR FRo.ECT

Projected tariff and anuat fee level

AmusaL Fee tvalte 1990)(1) (2)

Operation ConsUmDtion (ml3 rer day) m3 Renewal Renewal X ofStarting Private Public Price 2.5%iyear 0.5liyear increastng Averoap

go. CamaWi Water System Year Stavxpipe Connection Connection Total (FBu) (FBu) (Fou) (US1) Income at

PRa«"CE OF IrAAV

1 Natongo Swisange 1994 59.4 3.0 4.3 66.7 38 1,760 705 4.3 2.0X2 Natongo Gitwe 1994 72.5 3.7 1.1 77.3 55 2,490 945 5.7 2.7X3 Ratango Gasare 1994 92.5 4.7 0.8 98.0 52 2,360 915 5.5 2.6X4 Muruta wunanfra 1994 45.5 2.3 2.4 50.2 54 2,460 975 5.9 2.8X5 Nuruta Remera 1994 97.2 4.9 3.1 105.2 39 1,780 705 4.3 2.0X6 Ndanga Mbogwe 1995 57.2 2.9 0.9 61.0 53 2,440 830 5.0 2.4X7 uhanga "âmeana 1995 119.2 6.0 32.3 157.5 41 1,960 455 2.8 1.3X8 Rango Rubunsu 1995 40.1 2.0 3.0 45.1 53 2,460 815 4.9 2.319 Rango Rango 1995 39.2 2.0 8.3 49.5 67 3,210 780 4.7 2.2X

10 Kabarore Rugazi 1996 81.3 4.1 8.2 93.6 48 2,240 740 4.5 2.1X11 Kabarore Kabarore 1995 27.2 1.4 6.1 34.7 41 1,940 700 4.2 2.0X12 Kayanza/Muruta Caspazi 1996 165.2 8.3 7.2 180.7 55 2,510 775 4.7 2.2X13 Kayanzae/uruta Ruvomo 1996 65.8 3.3 3.0 72.1 66 3,000 975 5.9 2.8X14 Gahombo Nikont 1996 44.0 2.2 3.2 49.4 62 2,850 990 6.0 2.8X15 Gatara/Gahombo Gatara Nord 1996 450.7 22.8 15.7 489.2 58 2,640 860 5.2 2.5116 Gatarf/Natombo Gatara Sud 1996 735.9 37.2 29.5 802.6 46 2,110 665 4.0 1.9X17 Butaganzwa Butaganzwa 1996 135.2 6.8 8.5 150.5 42 1,950 645 3.9 1.8X18 Butaganzwa/tRango Rubirizi 1996 219.5 11.1 20.5 251.1 68 3,160 985 6.0 2.8X

Sub total 2547.6 128.7 158.1 2834.4 52 2,407 803 4.9 2.3X

PRCiOE OF KARUI

19 Shoubo Kiyange 1994 30.5 1.5 2.3 34.3 47 2,190 900 5.5 2.6X20 Shohbo Gaharo 1994 67.6 3.4 1.6 72.6 38 1,740 750 4.5 2.1X21 Buenyuzi Busenyuzi 1995 81.1 4.1 3.9 89.1 158 7,230 2,175 13.2 6.2122 Bugenyuui Canzikiro 1994 66.2 3.3 4.7 74.2 42 1,940 775 4.7 2.2123 Gihogazi Ruzanaza 1995 57.5 2.9 14.6 75.0 54 2,620 740 4.5 2.1X24 Gihogazi Nugogo 1994 71.5 3.6 8.7 83.8 41 1,920 705 4.3 2.0125 Nutumba Bibara 1995 73.4 3.7 7.8 84.9 58 2,690 845 5.1 2.4X26 Nutuba Gasera 1994 38.6 2.0 6.9 47.5 40 1,890 700 4.2 2.0127 Nyabikere Rugwiza 1995 78.1 3.9 8.7 90.7 47 2,170 720 4.4 2.1X28 Nyabikere Taba 1995 127.6 6.4 4.1 138.1 62 2,820 920 5.6 2.6X29 Siuhiga Citanga 1995 46.5 2.3 3.4 52.2 67 3,110 1,025 6.2 2.9X 0

Sub total 738.6 37.1 66.7 842.4 59 2,756 932 5.7 2.7X

Total 3286.2 165.8 224.8 3676.8 56 2,582 868 5.3 2.5X

a/ Average armual cash ;ncome in rural areas is estimated to FBu 35,000.

Annex 1 0-48- Page 1 of 6

WTMi SUPPLY SECoIe PRC.ECT

CounâL luter Utilitie.Inco Stutemft

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Revenue*WVter sales (Priv. connect.) 101 111 123 136 150 165 173 182 191 201 211 221.Voter sales CStarcidppes) 419 479 545 613 684 759 8U 945 1049 1161 1281 1411

Total Revenues 520 591 668 749 834 924 1022 1127 1240 1361 1492 1632Expenses (Cash and non cash).Personnel 129 137 145 153 161 169 177 186 195 205 215 226.Operating costs 31 32 34 36 38 40 42 44 46 49 51 54.Others and services 77 81 86 91 96 100 105 111 116 122 128 134.Renewal charges 225 278 337 400 466 539 617 702 793 893 1000 1115

Total Expenses 461 529 602 680 761 848 941 1042 1151 1268 1394 1529

Net Incoae 59 62 66 70 73 77 80 85 89 93 98 103

2 aitueRevenues.Vater sales (Priv. cormect.) 94 103 113 124 137 151 167 186 208 233 263 297.Vater sales (Standpipes) 677 785 903 1027 1156 1293 1441 1599 1767 1947 2137 2340

Total Revenues 771 888 1017 1152 1292 1444 1608 1785 1975 2180 2400 2637Expenses (Cash and non cash).Personnel 129 137 145 153 161 169 177 186 195 205 215 226Operating costs 59 62 66 70 73 77 81 85 89 93 98 103.Others and services 86 91 96 102 107 112 118 123 130 136 143 150.Renewal charges 401 495 600 712 831 960 1099 1251 1414 1591 1782 1988

Total Expenses 674 785 907 1036 1171 1317 1475 1645 1828 2025 2238 2467

Met Inc me 97 103 109 115 121 127 133 140 147 154 162 170

3 BesaceRevenues.Water sales (Priv. comect.) 102 111 121 133 145 160 177 198 223 252 287 330.Vater sales (Standptpes) 835 967 1111 1262 1418 1586 1765 1957 2161 2377 2607 2848

Total Revenues 937 1078 1232 1394 1563 1746 1943 2155 2383 2629 2894 3178Expenses <Cash and non cash).Personnel 192 203 216 227 239 251 263 276 290 3C5 320 336Operating costs 56 60 63 67 70 73 77 81 85 89 94 98.Others &nd services 93 99 105 110 116 122 128 134 141 148 155 163.Rumewal charges 479 592 717 852 993 1147 1314 1495 1691 1902 2130 2376

Total Expenses 820 954 1101 1256 1418 1593 1782 1987 2207 2444 2699 2974

Net Incame 117 124 131 138 145 153 160 168 177 186 195 205

Revenue.Vater sales <Priv. connect.) 92 100 109 118 127 137 148 160 173 187 202 219.Uater sales (Standpipes) 439 506 579 655 735 821 913 1013 1120 1235 1358 1490

Total Revenues 531 605 687 773 862 958 1061 1173 1293 1422 1560 1709Expenses (Cash and non cash).Personnel 129 137 145 153 161 169 177 186 195 205 215 226:Operating costs 22 24 25 27 28 29 31 32 34 36 37 39Others and services 74 79 84 88 93 97 102 107 113 118 124 130

.Renewal charges 243 300 364 432 504 582 667 758 857 965 1080 1205Total Expenses 469 540 618 700 785 877 976 1084 1199 1323 1457 1601

Met Incar 62 66 70 73 77 81 85 89 94 98 103 108

SuRem»eRevenues.ater sales tPriv. coemect.) 113 125 137 150 164 180 198 217 240 264 292 324.Vater sales <Standp4pes) 677 780 892 1009 1131 1262 1403 1553 1714 1887 2071 2268

Total Revenues 790 904 1029 1160 1296 1442 1600 1771 1954 2151 2363 2591Expenses (Cash and non cash).Personnel 192 203 216 227 239 251 263 276 290 305 320 336.Operating costs 40 42 45 47 49 52 55 57 60 63 66 70.Others and services 88 94 99 105 110 115 121 127 134 140 147 155.Renewal charges 376 465 563 669 780 901 1032 1174 1327 1493 1672 1866

Total Expenses 696 804 923 1048 1178 1319 1471 1635 1811 2001 2206 2426

det Incae 94 100 106 112 117 123 129 136 143 150 157 165

Annex 10-49- Page 2 of 6

Comune l "ter UtilItf eIncm Stmtmntu

<FDsiOOO>

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

6 abogweRevenues.Water sales (Priv. connect.) 0 75 83 91 101 112 126 142 161 184 193 203.uater sales (Standp, pes) 0 527 612 702 795 894 1001 1114 1234 1361 1514 1678

Total Revemues 0 602 695 793 895 1006 1126 1256 1395 1545 1707 1881Expenses (Cash and non cash).Personnel 0 71 75 79 83 87 92 96 101 106 111 117.OperatIng costs 0 53 56 59 62 66 69 72 76 80 84 88.Others ard services 0 78 83 88 92 96 101 106 112 117 123 129.Renewal charges 0 322 398 480 567 662 764 876 996 1126 1267 1419Total Expenses 0 524 613 706 805 911 1026 1151 1285 1429 1585 1753

Net Incoe 0 77 82 86 91 95 100 105 110 116 122 128

7 iiuaflRevenues.Water sales <PrIv. comect.) 0 580 623 667 710 756 805 857 912 971 1034 1101.Uater sales (Standpipes) 0 603 742 891 1049 1221 1407 1608 1825 2061 2315 2589

Total Revenues 0 1183 1365 1558 1759 1977 2211 2465 2738 3032 3349 3690Expenses (Cash and non cash).Personnel 0 209 221 234 245 258 270 284 298 313 329 345.Operating costs 0 79 83 88 92 97 102 107 112 118 124 130.Others and services 0 114 121 128 134 141 148 155 163 171 180 189.Renewal charges 0 630 779 940 1110 1295 1495 1713 1949 2203 2479 2776

Total Expenses 0 1032 1205 1389 1581 1790 2015 2259 2522 2805 3111 3440

Net Incne 0 151 160 169 178 187 196 206 216 227 238 250

Revenues.Water sales (PrIv. connect.> 0 100 110 120 130 142 154 168 183 199 217 237,Water sales (Stanefipes> 0 361 420 482 547 618 693 774 861 955 1055 1163

Total Revenues 0 461 530 602 678 759 847 942 1044 1154 1273 1400Expenses (Cash nd non cash).Persomnel 0 71 75 79 83 87 92 96 101 106 111 117.Operating costs 0 30 32 34 35 37 39 41 43 45 47 50.Others nd services 0 72 76 81 85 89 93 98 103 108 113 119.Renewal charges 0 232 286 345 408 476 550 629 716 810 911 1020

Total Expenses 0 404 470 539 611 689 773 865 963 1069 1183 1306

Net Incoae 0 57 60 64 67 70 74 77 81 85 90 94

9 RUUSRevenues.Water sales (Priv. connect.) 0 257 277 297 317 338 361 385 411 438 468 499.Water sales (Stan4,ipes) 0 337 412 492 577 669 769 877 994 1120 1256 1403

Total Revenues 0 594 689 789 894 1007 1130 1262 1404 1558 1723 1902Expenses (Cash and non cash).Personnell 0 71 75 79 83 87 92 96 101 106 111 117.Operat1ng costs 0 38 40 42 45 47 49 52 54 57 60 63.Others and services 0 73 77 81 85 90 94 99 104 109 115 120.Renewal charges 0 334 413 498 588 686 793 908 1033 1168 1314 1471Total Expenses 0 516 606 701 802 910 1028 1155 1292 1440 1600 1772

Net Incoae 0 79 83 88 92 97 102 107 112 118 124 130

10 amiRevenues.Uater sales (Priv. connect.) 0 0 235 253 273 293 315 339 365 393 423 456.later sales (Standpipes) 0 0 710 823 941 1069 1207 1356 1517 1690 1876 2076Total Revenues 0 0 945 1076 1214 1362 1523 1696 1882 2083 2300 2532

Expenses (Cash and non cash).Personnel 0 0 216 227 239 251 263 276 290 305 320 336.Operating costs 0 0 61 64 67 71 74 78 82 86 90 95.Others omd services 0 0 102 107 113 118 124 130 137 144 151 158.Renewal charges 0 0 453 558 670 791 923 1066 1221 1389 1570 1767

Total Expenses 0 0 831 957 1088 1231 1384 1551 1730 1923 2131 2356

Net Inconm 0 0 113 120 126 132 138 145 153 160 168 177

Annex 1 0-50- Page 3 of 6

Coul Uhter Utilitiesneo Stateoits

(lW000>

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

il Revenues.Uater sales (Priv. conrect.> 0 113 121 129 136 144 153 162 172 182 191 201.Water sates (Stanciipes) 0 199 231 265 301 340 383 428 477 530 589 652

Total Revenues 0 312 352 394 438 485 536 590 649 712 780 852Expenses (Cash and non cash).Personnel O 71 75 79 83 87 92 96 101 106 111 117.Operating costs O 16 16 17 18 19 20 21 22 23 24 26.Others and services 0 69 73 77 81 85 89 94 99 104 109 114.Renewal charges O 123 152 183 216 252 291 333 379 429 483 540Total Expenses O 278 317 357 399 444 492 545 601 662 727 797

Net Ircome 0 33 35 37 39 41 43 45 48 50 52 55

12 Cup iRevenues.Vater sales (Priv. comect.) O O 336 369 403 441 483 530 583 641 707 780.Water sales (Stancdipes) 0 0 1506 1763 2032 2322 2635 2971 3333 3721 4138 4584Total Revenues 0 0 1843 2131 2435 2763 3118 3501 3916 4363 4844 5363

Expenses (Cash ar non cash).Personnel O 0 292 308 324 340 357 375 393 413 434 455.Operating costs 0 0 97 102 108 113 119 125 131 137 144 151.Others ard services O 0 139 147 154 162 170 179 188 197 207 217.Reneuat charges 0 0 1066 1312 1574 1859 2169 2505 2869 3264 3691 4152Total Expenses O 0 1594 1869 2159 2474 2814 3183 3581 4011 4476 4976

Net Income 0 O 248 262 275 289 303 319 334 351 369 387

13 RuvomORevenues.Water sales (Priv. correct.) O 0 165 182 201 222 246 273 303 338 377 421.Water sales (Standpipes) 0 0 756 876 1002 1137 1282 1438 1604 1782 1972 2175Total Revenues O 0 921 1059 1203 1359 1528 1711 1908 2120 2349 2595

Expenses (Cash and non cash).Personnel O 0 145 153 161 169 177 186 195 205 215 226.Operating costs O 0 66 69 73 77 80 84 89 93 98 103_.Others and services 0 0 95 100 105 110 116 122 128 134 141 148.Reneial charges O 0 496 611 733 866 1010 1167 1337 1520 1719 1934Total Expenses 0 0 802 933 1072 1221 1384 1559 1748 1952 2173 2410

Net Income O 0 119 125 131 138 145 152 160 168 176 185

14 NikoniRevenues.Water sales (Priv. conneet.) 0 0 132 143 154 167 180 194 209 226 244 263.Water sales (Standpipes) O 0 513 592 674 762 858 960 1071 1191 1319 1457Total Revenues O 0 646 735 828 929 1037 1154 1280 1416 1563 1720

Expenses (Cash and non cash).Personnel O 0 145 153 161 169 177 186 195 205 215 226.Operatirn costs O 0 35 37 39 41 43 45 47 49 52 54.Others and services O 0 84 89 93 98 103 108 113 119 125 131.Renewal charges 0 0 305 376 451 532 621 717 822 935 1057 1189

total Expenses 0 0 569 654 743 839 943 1056 1177 1308 1449 1600

Net Income 0 0 77 81 85 89 94 98 103 109 114 120

15 Gataral Revenues.Water sales (Priv. connect.) O 0 880 967 1059 1163 1280 1413 1562 1730 1921 2136.Water sales (Standpipes) 0 0 4552 5290 6062 6894 7789 8750 9780 10883 12064 13325Total Revenues O 0 5432 6256 712Z 8058 9069 10162 11342 12614 13984 15461

Expenses (Cash and non cash).Personnet 0 0 1161 1224 1286 1350 1418 1488 1563 1641 1723 1809.Operatlng coati 0 0 237 250 262 275 289 304 319 335 352 369.Others snd services 0 0 333 351 369 387 407 427 448 471 494 519.Renewat charges 0 0 2992 3682 4418 5219 6089 7033 8056 9164 10362 11657Total Expenses O 0 4722 5508 6335 7232 8202 9252 10386 11610 12931 14354

Net Income 0 0 710 749 786 826 867 910 956 1003 1054 1106

Annex 1 0- 51 - Page 4 of 6

Ccanut Mater UtititIesIncoee Statemfts

<FBWOOO)

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

16 Gâtera SRevenues.Water sales (Priv. comect.) 0 0 1215 1333 1459 1599 1756 1931 2128 2349 2597 2875.Water sales (Stan*dppes) 0 0 5742 6703 7710 8796 9966 11223 12573 14020 15571 17230

Total Revenues 0 0 6956 8036 9169 10395 11721 13154 14701 16370 18168 20106Expenses (Cash and non cash).Personnel O 0 1371 1446 1519 1595 1674 1758 1846 1938 2035 2137.Operating coste 0 0 283 298 313 329 345 363 381 400 420 441.Others and services 0 0 412 435 457 480 504 529 555 583 612 643.Reneual charges 0 0 3962 4876 5851 6912 8064 9314 10669 12136 13723 15438

Total Expenses 0 0 6028 7056 8140 9315 10587 11963 13451 15057 16790 18658

Met Income 0 0 929 980 1029 1080 1134 1191 1250 1313 1379 1448

17 EutsagwnmRevenues.Water sales (Priv. connect.) 0 0 255 280 307 337 370 406 447 492 542 598.Water sales (Stancdpipes) 0 0 1029 1189 1356 1536 1729 1937 2159 2398 2653 2927

Total Revenues 0 0 1284 1469 1663 1873 2099 2343 2606 2890 3196 3525Expenses <Cash and non cash).Persoeel 0 0 292 308 324 340 357 375 393 413 434 455.Operating costs 0 0 64 68 71 75 78 82 86 91 95 100.Others and services 0 0 117 124 130 136 143 1i0 158 166 174 183.Renewal charges 0 0 651 802 962 1136 1326 1531 1754 1995 2256 2538Total Expenses 0 0 1125 1301 1487 1687 1904 2139 2392 2665 2959 3276

Net Income 0 0 159 168 177 185 195 204 215 225 237 248

18 Ru>iriRevenues.Mater sales (Priv. comnect.) 0 0 852 942 1038 1144 1262 1394 1540 1702 1883 1977.Water sales (Standpipes) 0 0 2538 2948 3376 3836 4329 4859 5425 6031 6679 7476

Total Revenues 0 0 3390 3890 4413 4980 5592 6252 6965 7734 8561 9453Expenses (Cash and non cash).Personnel 0 0 782 825 866 909 955 1002 1052 1105 1160 1218.operating costs 0 0 166 175 184 193 203 213 224 235 247 259Others and services 0 0 229 241 253 266 279 293 308 323 339 356

.Renewat charges 0 0 1783 2195 2634 3111 3629 4192 4802 5462 6176 6948Total Expenses 0 0 2960 3436 3937 4479 5066 5701 6386 7125 7923 8782

Net Income 0 0 430 454 477 500 526 552 579 608 639 671

19 KiwaeRevenues.Water sales (Priv. cornect.) 66 74 83 92 103 115 128 143 160 180 201 225Mater sales (Standpipes) 264 301 342 385 428 474 524 576 632 690 753 819

Total Revenues 330 375 425 477 531 589 652 719 792 870 954 1044Expenses (Cash and non cash).Personnel 67 71 75 79 83 87 92 96 101 106 111 117.Operating costs 14 15 16 17 18 19 20 20 22 23 24 25.Others and services 66 70 74 78 82 86 90 94 99 104 109 115.Reneual charges 145 180 218 259 302 348 399 454 513 577 647 721

Total Expenses 292 335 383 432 484 540 600 665 735 810 891 978

Net Income 38 40 42 45 47 49 52 54 57 60 63 66

2OGah,roRevenues.Water sales (Priv. comect.) 69 76 84 93 102 113 125 139 155 173 194 217.Water sales (Standpipes) 483 553 630 710 792 880 975 1076 1183 1298 1420 1549

Total Revenues 553 630 714 803 894 993 1100 1214 1338 1471 1613 1767Expenses (Cash and non cash).Personnoel 129 137 145 153 161 169 177 186 195 205 215 226Operating coste 33 35 37 39 41 43 46 48 50 53 55 58.Others and services 78 83 88 92 97 102 107 112 118 124 130 136.Renmal charges 249 308 373 442 516 596 683 776 878 988 1106 1234

Total Expenses 489 562 642 727 815 910 1012 1122 1241 1369 1507 1655

Net Incoeo 64 68 72 76 79 83 88 92 97 101 106 112

Annex 1 0-52- Page 5 of 6

Ccaut hter UtititieInco St teents

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

21 Uuu'vuzRevenues.Uater mates (Priv. connect.) 0 468 514 563 614 671 734 804 881 967 1063 1169.Uater sales (StancHipes) 0 1788 2141 2516 2911 3337 3797 4292 4824 5397 6011 6670Total Revenues 0 2255 2654 3079 3525 4008 4531 5096 5706 6364 7074 7839

Expenses (Cash and non cash).Personnet O 203 216 227 239 251 263 276 290 305 320 336.Operating costs 0 105 111 118 123 130 136 143 150 158 165 174.Others and services 0 121 128 135 142 149 156 164 172 181 190 199.Renetal charçs 0 1493 1847 2227 2630 3069 3545 4060 4618 5222 5875 6580

Total Expenses 0 1923 2302 2707 3134 3598 4100 64 5231 5866 6550 7289

Met Income 0 333 353 372 391 410 431 452 475 498 523 550

22 CumikiroRevenues.Water saies (Priv. comect.) 124 135 148 161 174 189 205 223 242 263 285 310.U ter smaes (Standpipes) 484 560 643 730 821 918 1023 1136 1257 1387 1527 1676Total Revenues 608 695 791 891 995 1107 1228 1359 1499 1650 1812 1987

Expenses (Cash and non cash).Personnel 129 137 145 153 161 169 177 186 195 205 215 226.Operatlng costs 41 44 47 49 52 54 57 60 63 66 69 73.Others and services 79 83 88 93 98 103 108 113 119 125 131 138.Renewal charges 287 355 430 510 595 688 788 896 1013 1140 1276 1424

Total Expenes 536 619 710 805 905 1013 1129 1255 1390 1535 1692 1860

Net Inco e 72 77 81 86 90 94 99 104 109 115 120 127

23 Riu.aRevenues.Uater sates (Priv. comnect.) 0 356 382 407 433 460 488 519 551 585 622 660UWater saies (Stawb*fpes) 0 423 514 611 714 826 947 1078 1219 1372 1537 1715Total Revenues 0 779 896 1019 1147 1285 1435 1596 1770 1957 2159 2375

ExPenses (Cash and non cash)-Persomel 0 137 145 153 161 169 177 186 195 205 215 226.Operating costs 0 62 66 69 73 77 80 84 89 93 98 103Others and services 0 89 94 99 104 109 115 121 127 133 140 146

.Renewal charges 0 395 489 589 696 812 938 1074 1222 1381 1554 1741Total Expenses 0 683 793 911 1033 1166 1310 1465 1632 1812 2006 2216

Net Incore 0 97 102 108 114 119 125 131 138 145 152 160

243 uRevenues.Vater sates (Priv. connect.) 184 199 216 232 250 268 288 309 332 357 375 393.Uater maies (Stanctfpes) 465 545 634 727 825 930 1044 1167 1299 1441 1603 1777Total Revenues 648 744 849 960 1074 1198 1332 1476 1631 1798 1978 2171

Expenses (Cash and non cash).Personnel 129 137 145 153 161 169 177 186 195 205 215 226.Operating costs 38 41 43 46 48 50 53 55 58 61 64 67.Others and services 79 84 89 93 98 103 108 114 119 125 131 138.Renewat charges 322 399 483 573 669 773 885 1007 1138 1281 1434 1600Total Expenses 569 660 760 865 975 1094 1223 1362 1511 1672 1845 2031

Net Incone 79 84 89 94 99 104 109 115 120 126 133 139

25 libwnRevenues.Uater maies (Priv. comect.) 0 248 268 289 309 331 355 381 408 437 469 503.Water maies (Standpipes) 0 635 755 882 1015 1160 1317 1486 1668 1865 2077 2306Total Revenues 0 883 1023 1170 1325 1492 1672 1867 2076 2303 2546 2809

Expenses (Cash and non cash).Personnel O 137 145 153 161 169 177 186 195 205 215 226.Operating costs O 54 57 6U 63 66 69 73 76 80 84 89.Others and services 0 87 92 97 102 107 112 118 124 130 137 143.Renal charges 0 490 66 731 863 1007 1163 1332 1515 1714 1928 2159Total Expenses O 767 900 1041 1189 1349 1522 1709 1911 2129 2364 2617

Met Incan 0 116 123 130 136 143 150 158 165 174 182 192

Annex 10-53- Page 6 of 6

Ce une 1 "ter Utitl ffIncome Stetemat

(FOWOOO

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

ZS lraRevenues.Vêter sales (Priv. connect.) 128 134 140 145 150 155 161 166 172 178 185 191.Vêter ales (Stanc4ipes) 240 287 338 393 450 512 580 652 731 816 90r 1005

Total Revenues 368 420 478 538 601 668 741 819 903 994 1091 1196Expenses (Cash and non cash).Personnel 67 71 75 79 83 87 92 96 101 106 111 117.operatine costs 19 20 21 22 23 25 26 27 28 30 31 33.others and services 67 71 75 79 83 88 92 9f 101 106 112 117.Renewal charges 172 213 257 306 357 412 472 537 607 683 764 853

Total Expenses 324 374 429 486 546 611 681 756 838 925 1019 1120

Net Income 43 46 49 51 54 57 60 63 66 69 72 76

27 ais"Revenues.Vater sales (Priv. comnect.) 0 219 235 251 266 283 300 319 339 360 382 405.Vater sales IStan ipes) O 575 680 791 909 1036 1174 1322 1483 1656 1843 2045

Total Revenues 0 794 915 1042 1175 1319 1474 1641 1822 2016 2225 2450Expenses (Cash aid non cash).Persornel O 137 145 153 161 169 177 186 195 205 215 226Operating costs 0 56 59 6c 65 69 72 76 79 83 88 92others and services 0 88 94 99 104 109 114 120 126 132 139 146

.Renewal charges 0 413 511 616 728 849 981 1124 1278 1445 1626 1821Total Expenses 0 694 809 930 1058 1195 1344 1505 1679 1866 2068 2285

Net Incarne O 100 106 112 118 123 130 136 143 150 158 165

38 TbRevenues.Vater sales (Priv. cmonect.) 0 242 267 292 320 351 386 424 468 518 573 636.Vater sales (Stan41ipes) 0 1201 1420 1652 1895 2157 2439 2742 3068 3417 3790 4189

Total Revenues 0 1444 1687 1945 2215 2508 2825 3167 3536 3934 4363 4825Expenses (Cash and non cash).Personnel o 137 145 153 161 169 177 186 195 205 215 226.Operating coste 0 101 107 113 119 125 131 137 144 151 159 167.Others aid services 0 118 125 131 138 145 152 160 168 176 185 194.Reneial charges 0 886 1096 1321 1561 1821 2103 2409 2740 3098 3486 3904

Total Expenses 0 1241 1472 1718 1978 2259 2563 2892 3247 3631 4045 4491

Net Incarne 0 202 215 226 238 249 262 275 289 303 318 334

29 BitaruaRevenues.Vater sales (Priv. connect.) 0 145 158 173 188 204 222 241 263 286 311 339.Vlater sales (Standipes) 0 493 580 672 768 872 984 1104 1234 1373 1523 1684

Total Revenues 0 638 738 844 955 1076 1205 1345 1496 1659 1834 2023Expenses (Cash and non cash).Persornel 0 71 75 79 83 87 92 96 101 106 111 117.Operating costs 0 54 57 60 63 67 70 73 77 81 85 89.Others and services 0 77 82 86 91 95 100 105 110 116 122 128.Reneoal charges 0 352 435 525 620 723 835 957 1089 1231 1385 1551

Total Expenses 0 554 650 751 857 973 1097 1232 1377 1534 1703 1885

Net Incare 0 83 88 93 98 103 108 113 119 125 131 138

mM ' nU'Y SECTOR PRO-M

Incoo Sttefnt<Fiu Niltion)

---ACTUIL/AUDITED-ESTINATED -*-*---*---------------*-------- -PROJECTED -----.-----.-------------------------------1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

tBATISS IEVEB

.Total Electricity * Mater Revems 1.590 1,837 2,347 2,658 3,237 3,904 4,2 4,744 5,234 5,790 6,395 7.060 7,7§ 2

.Government Sahsidf 1 186 0 0 0 0 ° O 0 ° ° ° °.Sales of Works< Electricity e Vater) O 0 O O 0 O O 0 a O 0 O O.Sales ros Lease (Etectrtcity Mater) O 0 O O 0 O O 0 O O O ° °.Internal lorks 122 410 279 362 337 367 369 386 397 411 424 438 453.Other (Finacblat Rewns) 271 477 393 457 446 474 483 502 517 535 552 571 590

... . .... . . ...... . ...... -----. . ..... ..... . ...... ..... . ...... ..... . ...... ....... .. ...... ...... ...... ........... ..

Totat Oaeratimu Revweres 1.984 2,910 3,019 3,477 4,019 4,745 5,144 5,633 6,148 6,736 7,371 8,069 8,835

EN'S

.Consuad 6oods and Services 382 577 600 624 649 675 702 730 759 790 821 854 M88

.Other Expenses and tosses 113 83 31 31 31 31 31 31 31 31 31 31 31

.Salaries 467 505 535 504 468 425 451 478 506 537 569 603 639JTaxes 22 40 42 .44 46 49 51 54 56 59 62 65 68

xecistion 792 998 1,376 i,460 1,620 1,809 1,887 1,899 2,058 2,070 2.070 2,124 2,203 ,Povsion G 212 O O O O O O O O O O O

Exchawle Losses 2,503 2.806 0 il 26 30 20 22 1,446 1,446 2.849 2,849 2,849 un.Sinetac 0 0 264 264 264 264 264 264 264 264 264 264 264 >

... ... .. ...... ....... .. ........... .. ......... ....... ..... ....... ..... ....... ..... -----.. ..... ----- . ----

Total Expenses 4,279 5,221 2.848 2,944 3,105 3,283 3,406 3.478 5.121 5,196 6.666 6.790 6,942

Profit & toss Before Interest (2 295) <2 311) 170 532 915 1,462 1,738 2,155 1,027 1,540 705 1,279 1,893Interest -861> -923' (1,053> <1,154) (1.158) "1.185) (1.191) (1.430) (1.668) (1.656) <1,6643) C1.30>) <1618)

Profit & Loss After Interest (3 156) (3,234) (883) (622) (243) 277 547 725 (641) (116) <938) (351) 275Exception. Lo3ses Z205) (69) <69) (69) (69) (69) (69) (69) (69) (69) (69) t69) <69)

lUet Profit & Loss of lear (3,361) (3 303) (952) (691) (312) 208 478 656 (710) (185) (1,007) (420) 206Cumulated Profit & Loos (2.872) (6,233) (9,536) (10,487) (11,178) (11,490) (11,282) (10,804) (10,148) (10,858) (11.043) (12,050) (12,470)

Met Profit & Loss (6,233> <9,536 (10,487) <11,178> <11.490> <11,282> <10,804> <10,1481 (10,858> (11,043>) 12,050>) 12.470) <12.264)

Average of Met Flxed Assets in Service 18 622 18 468 18,239 18,201 18,765 20,012 20,462 19 346 18,839 18,243 16,272 14,639 13 618Rate of Return on F1xed Assets -12.3x 12.52 0.9X 2.9X 4.9X 7.3X 8.52 11.1% 5.4X 8.4X 4.32 8.7X 13.9x

Debt Service Cowerpe (1.4) l1.1) 1.Z 1.4 1.7 2.1 2.3 2.2 1.5 1.7 1.3 1.6 1.9Operating Ratio 215.7 179.4 94.4 84.7 77.2 69.2 66.2 61.7 83.3 77.1 90.4 84.1 78.6Capital Investtnt fr0.: ,.Energy Sector Reabilitation Credit 217 379 379 108.Yater Supply Sector Credit and KfiW grant 49 100 361 199 00 :3

_ x

B-

IM1ER SIPPLI SECTOR PROJECT

REGIDE90

Balence Sheets(FBu Miltion)

---ACTUAL/AiDITED-ESTINATEO ----------------------------- PROJECTED-----------------------------------------1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000SETS

Ffxed Assets

.Fixed Assets in Service 21,825 22,460 23,686 25,225 27,899 31,148 32,495 32,704 35,439 35,638 35,638 36.566 37,922.Less: Accumàlated Depreciation (3,203) <4,146) (5,522) t6,987) (8.607) (10,416) (12,303) (14,203) (16,261) (18,331> (20,401> (22,525) (24,727>....... ......... ....... -------... .... .... .. ....... ........... .............. ........ ........... ........ ........... . . ....... .............. .Jet Fixed ssets in Operation 18,622 18,314 18,164 18,238 19,291 20,732 20,192 18,501 19 178 17,307 15,237 14,041 13 195.Other Assets 315 905 923 942 960 1,480 1.509 1,539 1,906 1,944 1,983 2,023 2,063.Iork in Progress 528 1,226 4,617 6,050 4,169 1,347 209 2,375 199 0 928 1,356 2,025~~~~~~~. ...... ... . .. ------ ...... .. ...... ..... ...... . . - . ------ ..... .... .... 0otal Met Fixed Assets 19,465 20,445 23,70 25,229 24,420 23,559 21,910 22,415 21,283 19,252 18,148 17,420 17,283Current ssetts

.Cash and Banks 855 1,463 1,445 216 568 1,810 886 1,291 1 698 2,339 2,375 2,612 2,874.Capitalixed Exp es 4,950 7,783 7,783 7,783 7,783 7,783 7,783 7 783 7,783 7,783 7 783.Consumer« Rece,vables 878 1,212 1,173 831 607 732 805 890 981 1,086 1,199 1,324 1,461.Governmt Receinvbles 655 681 391 277 202 244 268 297 327 362 400 441 487.Other Receivablts 83 o 60 60 60 60 60 60 60 60 60 60 60.Inventories 605 972 970 968 966 1,464 1,462 1,460 1,458 1,456 1,454 1,452 1,450..... ...... . ... ... . ..... . ------. . ...... ------. . .. ...... ------ ------.. ---- . ..... ------... ..Total Current Assets 8,027 12,111 11,822 10,134 10,186 12,092 11,264 11,780 12,307 13,085 13,270 13,672 14,115Total Assets 27,492 32,556 35,527 35,364 34,606 35,651 33,174 34,195 33,590 32,337 31,418 31,092 31,398

EUIKTT l LIAIlLITIES

.încedsein Capitat 4.982 4,982 4.982 4,982 4,982 4.982 4,982 4 982 4 982 4,982 4,982 4 982 4,982aIncreasein Capital 2 14641 1,641 19641 1,641 1,641 14641 1,641 1,641 1,641 1,641 1,641 1,641.Goverrunt Contribution to Capital 0 0 10 410 10 410 10 410 10,410 10,410 10,410 10 410 10 410 10 410 10 410 10,410.Earnings of the Tear (3,361) <3,303) 1952) (691) 1312) 208 478 656 (710) (185> (1007) (420) 206.metained Earnings (Accatlted Losses) (2,872> <6,233) (9,536) (10,487) (11,178) (11,490) (11,282> (10,804> (10,148> <10,858> (11,043> (12,050) (12,470).RevaLuation Reserve

Total Equity (l,251) (2,913) 6,545 5,855 5,542 5,751 6,229 688 6,174 5,989 4,983 4,563 4,769Equ.ipent Subsidy 384 866 866 866 270 0 o O 0 0 0 0 0Long-Ter Debt 15,981 16,821 10,409 10,570 11,124 11,423 13,881 15,103 14,762 14,231 14,231 14,231 14,231Less: Current Portion 233 251 272 293 317 342 369 399 431 465 502 543 s86

Met Lon-Trer Oebt 15,748 16,570 10,138 10,277 10.808 11.081 13,512 14,704 14,331 13,765 13,728 13,668 13,645Provision for Lasses 5,038 7,868 7,868 7,868 7,868 7,868 5,038 5,038 5,038 5,038 5,038 5,038 5,038Current Liabilities

Current Portion of L.T. Debt 233 251 272 293 317 342 369 399 431 465 502 543 586Accaounts Payable 2.390 2,151 2,075 2,442 2.038 2,846 3,075 2,219 2,666 2,129 2,217 2,311 2,411 Latent Exchlang Lasss 42950 7,763 7l763 7.763 7,763 7.763 4,950 4,950 4 950 4 950 4 950 4.950 4 950Total Current Liabilities 7,572 10,165 10,110 10,498 10,118 10,951 8,395 7,568 8,047 7,544 7,670 7,804 7,94? xttoal EmuIty end Ltabilities 27,492 32,556 35,527 35,364 34,606 35,651 33,174 34,195 33.590 32,337 31,418 31.092 31,398 o

Current Ratio (timo> 1.1 1.2 1.2 1.0 1.0 1.1 1.3 1.6 1.5 1.7 1.7 1.8 1.8Debt lEquity ratio /a (12.06 (5.7) 1.5 1.8 2.0 1.9 2.2 2.1 2.3 2.3 2.8 3.0 2.9 C.Debt /Equity ratio /b (12.6) (5.7) 0.3 0.3 0.3 0.4 0.4 0.5 0.5 0.4 0.5 0.5 0.5Accounts. Rereivable as Equivalentto nonthu of Salas *Consuiers 8.8 10.6 8.0 5.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0-Covernent 19.8 17.8 8.0 5.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0

a/ .efore ev.tuat ionb! After Realuation. Calculated using a revaluation surplus of FBu 25,355.5 million.

eTE UWPLY SEcM 99OJECT

Fumh Fta. Stateit(Fhu fuitlt,)

--ACTUIAL/WDITED-ESTIMTED - PROJECTED ......................................... -..1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000ESim OF RIS

!nteut sourc

.Uet Inoeo after Tamms (2 295> (2 311> 170 532 915 1 462 1 738 2 155 1 027 1 540 705 1 279 1 893.Oepreciation. Provision wd Exchuius Losses 3.295 4.016 1,376 1,477 1,647 1.839 1.907 1.922 3.504 3.,516 4,919 4,1973 S.052Total internmt Sources 1.000 1,1.546 2,009 2,561 3,301 3,645 4,077 4,531 5,056 5,624 6,252 6.944Rorrmfnss

.Prropsed IDA Loru 0 0 0 217 379 428 209 361 199 O 0 0 0.:on-Project ReLated LoB 1,926 841 (6,412) 161 554 299 2,458 1,221 (341) (531) 0 0 0... ........ ............. .... .... ......... ---. .. ---. ..... ..... ....... ....... Total Dorreo1sn 1,926 841 (6,412) 378 934 727 2,667 1,582 (142) (531) 0 0 0Equlty Imetunts 0 1,641 10,410 0 0 0 0 0 0 0 0 0 0Epu lent Sn si y 384 a66 866 866 270 0 0 0 0 O O O OOther Seurr 2,306 1,903 1,029 (506) (941) 800 351 3,004 6,M 5,589 3,370 4,190 4,307..So . . . . . .. . .. . . ........... ---.. ...... -...........----........ s......TOTAL soWs MEOF FUDS 5S616 6,955 7,439 2,747 2,824 4,827 6,663 8,663 10,661 10,114 8,994 10,442 11,251 1APLICATII OF F_U

CD5pl eximiditures

Enegy Sector Rdehilitttion Project 0 0 0 217 379 379 108 0 0 0 0 0 0Proposed water SLq>iy Sectof Project 49 100 361 199Inter« t Duriu t C truction 0 O 0 22 38 43 21 36 20 O 0 0 0Other C aital Expsndlt 1,877 1,754 4,617 2,755 414 0 0 0 2,735 199 0 928 1,356Other As sts 25 590 18 18 19 519 30 30 367 38 39 40 40Chn,ge in M/orkim Capital 2,166 1,492 (233) (2,076) 432 1,073 1,728 1,342 48 1,281 60 26t 299Intereat an Lang-T Debt 861 923 1,053 1,154 1,158 1,185 1,191 1,430 1,668 1,656 1,643 1,630 1,618Rlepi_nt of Capital 233 251 272 293 317 342 369 399 431 4uS 502 543 586TOTAL APIJCATIOM OF PIDS 5,162 5,009 5,?26 2,383 2,75 3,591 3,54? 3,599 S,46t 3,640 2,244 3,407 3,900

Workinm Capital 454 1,946 1,713 (364) 68 1,141 2,869 4,212 4,260 5,541 5,601 5,869 6,168Cash Variation 267 608 (18 (1i 229> 352 1,242 (923> 405 407 641 36 237 261don Govern Consuta Recelv 271 333 (3 1343>) (224) 125 73 85 92 104 113 125 1376overumnt Reeivable 203 27 t (114) (75) 42 24 28 31 35 38 42 46lnreese<O,creasjV Capital Expenditures 2,503 2,833 0 0 0 0 0 0 0 0 0 0Other O (83) 60 0 0 0 0 0 0 0 0 0 0Inventories 147 367 (2) t2) <2> 498 t2) t2) (2 t2> 22) (2) > Decrease ln Curr. Liabitittes (1,224> (2,593> 58 (38> 380O (4833> 2,596 5Z6 (479) 503 4 (1g» 4> i <13) QQRoauding Oifferences O 0 ° ° 30 0) 2 0 0 ° ) O O(XTOTALB USEOFKiNlsA&TÀ 2,166 1,492 t233) (2,076) 432 1,073 1,728 1,342 4U8 1281 Î9 269 299 wDetrei1T 8eas in brK1xinCapptai (2,166) 01,492) 233 2,076 (432) (1,073) (1,728) (1,342) <48) <1,281) (60) (268) (299) o

IQIAL ~~~~ ~~~~ ~~0.0 00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0O1,902 2 343' 4,635 3,012 849 941 159 66 3,122 237 39 967 1,397I 000 1 705 1 546 2 009 2,561 3,301 3,645 4,077 4,531 5,056 5,624 6.252 6,934e Of Bs r 2n et &.6X 72.8X 3.4X A6.7 lN/A N/A N/A NIA N/A NIA N/A NIA M*h

et REGIDESO' Invnstt Progr_ woutd need to be qpdated fra FY1992.

-S7- Annex llPage 4 of 4

WATER- $UJPPT SEcwtR PROJEC!B~~~g 'pzo

Income Stateeant before and after Revalation

(1Y au Of Dec«eber 31, 1990)(Pau million)

Bofore AfterRevaluation Revaluation

1990 1990 a/

Operating Revenues 3,019 3,019Operating Expenses before Depreciation (1,472) (1,472)

Subtotal 1,546 1,546Depreciation b/ <1,137) (1,376)

Operating Income After Depreciation 409 170Exchange Losses c/ <2,806) 0

Operating Income (Losses) before Intereet (2,397) 170Interest (1,053> (1,053)

Operating Income after Interest (3,450) (883)Accumulated Losses (9,605) (9,605)

Operating Income (Losses) Carried Porward (13,054) (10,487)

Average of Net Fix Assets in Service 18,239 18,239Rate of Return On Fix Asseta -13.1% 0.9%

a/ Estimated Accountsb/ Revaluation Coefficient used is 2.42/2 - 1.21c/ As part of the Proposed Capital Reetructuring Package REGIDESO

would not support any exchange loeses from 1990 through 1995

- 58 -

Annex 1 2

|03t~~~s

il

.59. Annex 13

WATER SUPPLY SC5DR PROTHCT

Estimat-d Schmduls of Diuburusaente(Us$ million)

Diabursement StandardBank Fiscal Year during Accumulated Percent DiebureementSemester Ending Semester Diabursement Diebureed Profile

PY 92December 91 1.0 1.0 2.9% 0%June 92 2.7 3.7 11.4% 4%

pY 93December 92 2.4 6.1 18.7% 11%June 93 3.1 9.2 28.3% 19%

pY 94December 93 3.8 13.0 40.0% 29%June 94 3.7 16.7 51.2% 40%

PY 95December 94 3.5 20.2 61.9% 53%June 95 3.4 23.6 72.4% 63%

FY 96December 95 3.4 27.0 82.8% 73%June 96 2.0 29.0 88.2% 82%

FY 97December 96 1.4 30.4 93.0% 90%June 97 1.1 31.5 96.3% 93%

PY 98December 97 0.7 32.2 98.5% 97%June 98 0.5 32.7 100.0% 100%

Assumption that the Credit is approved by May 1991

Annex 14.60- Page 1 of 4

B-URUD

WAM-R SlJPPY SECIOR PROlE:C

Update of the Urban Water Tariff StudyTenis of Reference

A. CONTEXT

1. The existing REGIDESO's tariffs do not allow the utility to cover operating costs. In addition, te tariffstructure is inadequate and penalizes the small consumers.

2. In 1987, an institutional and tariff study financed by ADF, for both the urban and nwal water supplyand sewerage sectors was camried out by SOGREAH. Tie recommendations were not implemented, and updatingof this study is necessary.

3. The main objective of this updating water rates study is to lay the groundwork for the introduction ofnew potable water rates, the structure and level of which are to reflect the res! cost of service, while also taldnginto account the financial capacity of the various income groups. The new rates should also encourage long-ternconservation of water.

B. FIR STSlAGE

4. Ihe first phase of the study shall review in detail the current rate structure and its changes over the lastten years acompared with changes in the cost of living. It sh.ll cover the cost per m' of water as well as thecharges for lease of meters, maintenance of connections and meters, cost of private connections and simnilar services.

5. The mainly tasks to be performed by the consultant are the following:

(a) revaluation of the total fixed assets as of the date of the study, mentioning ail investments to be madeover the next ten years;

(b) projection of water consumption by user category and monthly volume: leus than In m3, from 10 to20 m3, from 20 to 50 m and more than 50 m;

(c) projection year by year of operating costa, based on expected consumption and planned investments.Tie share of unbilled water should steadily decrease from its current level to 20% by the end of the 10-year period;

(d) computation of the long-tern marginal cosa per m3 of water based on the cost of planned expansions andprojected operating costs. A 10% discount rale shal b. applied to water costs and volumes; and

(e) Using existing studies, drawing up a table of income groups.

C. SECOND STAGE

6. The Consultant shall then propose a rate policy designed tn accomplish the following objectives:

(a) the lowest income groups should have access to potable water at a cost not exceeding 2% of thehousehold budget;

(b) as many households as possible should be able to have private connections, to be achieved by reducingthe charge for installation to the actual cosm and spr.ading payment over four years at low interest;

(c) prejctWd opemting costs, debt service and capital investment should be fully covered.

7. Romdions shall bo made on the rate structure and the levels to apply by consumption category.

Annex 14-61- PagA 2 of 4

8. Alternatives are to be proposed under which revenue would cover only 20%, 40%, 60% and 80% ofcapital cot rpectively. Each aternative should be examined for accssibility and for its foreseeable impact onoverali consumption. An indexing formula should be proposed whereby rates cm be adjusted each year to refle¢tprice chages.

9. For each dternative, the rate of return on the revdlued fixed amets is to be calculated by dividing netoperating tevenue, including provision for depreciation of fixed asets but before payment of debt-serviceobligations, by the average of revalued net fixed amets for the preceding and current years.

D. ORGANlZATION OF THE SIUDY

10. The time allowed for the study is seven months, split into two phaes of three months each. An interimreport is to be submitted after the first phase. A final report is to be prepared and discussed with the Authoritiesat the end of the second phase. Both reports are to be sent in duplicmteto the World Bank.

11. The Water Authority (REGIDESO) will provide the following to asuist the Consultant:

(a) a full-time engineer to work in conjunction with him on the stuies and eventually take on theresponsibility for regular updating of the study data;

(b) a furnished office and secretarial support;(c) access to all available data, existing reports, sstics and annual aocouats.

Annex 14-62- Page 3 of 4

WATER SUPPLY SECTQR PROJECT

Water Supply Master Plan for BDuumburaTenms of Reference

A. CONTEXT

1. The 1980 Bujumbura Urban Development Master Plan is now out of date. The city has been growingrapidly for several years and a number of expansions have taken place dtat were not envisaged in 1980, including:

In the North: development of the Mutanga i neighboahood (1989-90), the Gasenyi I and IIdevelopment project, the SIP project to build 1,000 dwellings, the new squattersettlement in the Gasenyi zone (above the Kamenge Tochnical School) and the creationof the village of Camama.

In the South: development of the Musaga and Kanyosha neighbothoods (ECOSAT project, over 4,000low-income hcusing units) and sizable expansions of the Kinindo neighborhood (over1,000 serviced plots).

In the East: expansion of the city toward the Buhonga hills and the Sororezo neighborhooddevelopment project.

2. Ail these sites and services projects for new neighborhoods for which financing has already been securedare additional to the squatter settlements and were not included in the studies for the 1980 Master Plan. It istherefore urgent that this new configuration be taken into accouat and that the measures needed to meet the city'sfuture water needs be redefined.

B. URBAN GROWTH FORECASTS

3. The consultant will be required to prepare spatial development forecasts for the city by type of housing;the horizons to be considered are the years 2000 and 2010

4. The plans envisaged will be based on the prec.iing studies (1980 Master Plan), on the studies underway, on recent developmentz and on the trend presently observed. The industrial development programs will alsobe analyzed and taken into account.

5. The forecasts will he prepared by homogeneous city zone, for which possibilities of expansion anddensification will be studied according to the type of housing and its density.

C. WATER REOUIREMENT F-RECASIS

6. 'hM forecast of water requirements will be prepared globally for the city as a whole and also brokendown at the level of each homogeneous zone for the 2000 and 2010 horizons.

7. The unit quantities adopted must be realistic and based on consumption statistics gathered by sectorandior by sapled consumer groups and the consumnption forecasts will bh broken down by user category (domestic,commercial, industrial, govemment, standpipes, etc.).

8. The consumption forecsts will then be grouped by levels, as determned by technical studies of thedistribution system. They will be caculated mn terms of annual averages, daily peaLs and hourly peaks.

Annex 14- 63 - Page 4 of 4

D. CAPACIY AILYSIS OF EXISI ÉG FAC

9. 'Me consultant shal prepare an exhaustive and precise inventoty together with a techuical diagnosticstudy of the existing facilities, in particular catchment facilities, raw water output, treatment, treated water output,gravity supply systems, storage and distribution systems.

10. 'Me distribution of connections and standpipes in the different zones sad quarters of the city will alsobe inventoried and anaiyzed.

11. The consultat will study the capacity of the existing facilities, identify bottlenecks ansd snalyze thepossibilities for improvement of the ptesent instaled capacities.

12. A critical analysis must also be made of the generdl functioning of the facilities and of the brokdowninto pressure antdor service zones. In particular, a detailed aysis will be mado of the system output in order todeternle the percentages of physical and commercial losses. The consultant shaU set reduction targets for theselosses for the 1995, 2000, 2005 and 2010 horizons, specifying the nuesus to be employed and their cost.

E. DETERMINATION OF NEW WORRS REOUIRED

13. On the basis of the urban growth snd water consumption forecasts together with the findings of theinventory and diagnostic study of the existing facilities, the consultant shall determine the new facilities (bat willbe required to meet the needs as of the study horizons, afler having thoroughly studied the possibilities forimprovement, strengtheniig and rehabilitation of the existing facilities.

14. The phasing of the proposed measures will ho accompanied by a schedule of the capital and operatingcosts entailed, together with an economic and financial analysis. An environmental assessment of the proposedmeasures will be carried out.

15. The consultant shahl also analyze the institutional aspects iuherent in the nanagement and operation ofthe facilities, paying special attention to the question of maintenance. He will also sualyze the medium and long-term- financial impact of the proposals formulated, at the tariffing and customer management (connections andstandpipes) level.

16. fle consultant shal identify and evaluate the content of an emergency phase.

F. ORGANIZATION 0F THE STUDY

17. The study shall be carried out lu two sepamate phases. The first phase will comprise the forecasting ofurban growth and water requirements together with the analysis of the functioing of the existing facihities. Thesecond phase will comprise the determination of the facilities required to moet the needs as of the study horizonssad the proposals concerning the emergency phase. The total time period is 10 months.

18. The personnel needed for the sudy is estimated to be as follows:

Man-monthsHydraulic engineer 8Engineer 2Economist 3Financial analyst 3Sociologist 4

Total 20

Annex 15Page 1 of 2

BURUMI1

WATER SUt SECTO ISOlCT

Job Desoiptions

1. T'e General Directonte of Rural Water Resoures and Renewable Energies (DOHER), withi e di.Ministny of Rual Developmeut and Artisanat, is tie executing agency for the rual water sub-sector compofent ofthe Water Supply Sector Project which is to be supported by an IDA credit made to the Republic of Bumadi, a KtWgrant sud a Belgium grant, for improving water services in nine provinces of the country.

2. TMm worlks will be executed by qualified contractors supermised by engineering consultants. -Me projectwill be coordinat.d by a Project Unit (PAEMR), within DGHER. To assist in project implementation DOHER willrecruit thdre experts:

(a) a project adviser,(b) a maintenance engineer (financed by the Belgium cooperation); and(c) a community development expert.

3. Preference will be given to candidates familiar with working conditions in Sub-Saharan Africancountries. The candidates must be fluent in french.

A. I!riec AdLise

Position: Advisor of the PAEMR's Dtrector.Duration: 60 montbs.oualification: Water engineer with a good knowledge of design, implementation au opation of nrual waer

supply sytems.ExPdeneoae 10 yeus of management of rural water supply project.

&s§lmàlitLes:

(a) Advise the PAEMR Director, responsible for the implementation;(b) la coopeation with DGHER's management, ensure preparation and review of desigps, studiea and

documentation needed for project execution;(c) arrmage for review and where applicable approval of documentation by DGHER, other agencies of the

Government of Burnmdi and IDA;(d) Pepare and coordinate with consultants, DGHER and Govemment agencies the bidding phase of the

project;(e) Oversee actively in the supervision of construction undertaken by contractors and in the development

of procedures for monitoring and reporting on project implemeutation;(f) lu cooperation with consultants assure succesful project opeation, advise on the selection of staff for

tie operation and maintenance function;(g) assit in preparing instructions for the operation and maintenanc of water supply systems and in

designing the format snd frequency of operating and maintenance Teports;(h) Patticipate in the implemontation of the taining program for DGHER's staff and the communal water

systems operators as well as communal accountants and administrators; and(i) Prepare quartely progs reports on progress umplementation for DGHER and IDA.(j) lu carying olt his assignment the project adviser will to the maximum extent possible train local

countpat staff.

(k) Mm duty sttion will b. Bujumbua but extensive trvel in Bunmdi will b. roquired. lbe appointe. willreport to the Director of PAEMR.

Annex 15

-65- Page 2 of 2

B. mnemE Eiee

posigao: PAEMR, Adviser of the maintenanc unit.DRU": 60 months.Oud;fication: dtary engineer.

5 years of O.& M. of water supply systems, purticularly in Africa, including training of localworkers.

(a) O nze end supervise the actions of the maintenance unit;(b) train the personnel of tih technical personnel of the PAEMR's maintnce unit and of DHA (one half

day per week on each category);(c) establish a list of equipment required for the communal wodcops, for operation and maintenance;(d) establish a list of necessary spare parts for urgent repairs;(e) implement communal worksiops;(f) repair r;rai systems according to a personnel schedule as practical training in the field;(g) organize training of communal water attendants;(h) up to date qualitative and quantitative inventory of nu-l water supply systems and open a record file

for supervision end control. This sbould be computerized;(i) on Communes' requet help for important repairs; amd() supervise maintenance and repair of PAEMR's vehicles.

(k) TIb maintenance engineer will repot to the Project Director.

C. Communty DeveoRome.nA 3p

Pftion: PAEMR, chief of the sensitization unit.Duntion: 36 months.

)ualifijatio: Specialist in community development with a goud knowledge of operation and maintenance ofnra water supply systems.

BIR-eÉxoeco 10 years of commlnity development particularly in Africa.

ResDzmsibilities:

(a) Orgaize and supervise tIhe work of the social workers team of the PAEMR's sensitization team;(b) Help the communes to set up and organize Communal Water Utilities;(c) Help the popion to organize the users committoe and water boards;(d) Train on the job of the communal water board staff,(e) Prepare a program to educate population about the heailth implications of using safe water and the needs

to support such services by paying for the water, end(f) Supervise implementation of this program in the field.

(g) T'ho comunity development expert will report to the Project Director. He will organize his tasloe inclose coordination with NGO's in charged or construction of protected springs.

Annex 16-66- Page I of 2

W l SUPMY S13CTeOR ISOlECT

Supervion Plan

1. IDA's Suâenrsion Ioput into Key Activities. fli staff input indicated in the table below is for thereview of progImes reports, procurement actions, corepondence, and so on. It is estimated that this project willrequire eighteen staff-weels dudng the two firt project years, and twelve staff-wees per year thereafter.

2. Borrower's Contribution to Supervision.

(a) Progres Reports are to be submitted as foilows:

(t) no later tan one month after the end of each quarter and for each year, before Mach 31 of thefollowing year; and

(n) by PAEMR and REGIDESO with assistance fmom the project TA.

(b) Audit reports within six month of the end of each fiscal year. An extenal auditor, acceptable to IDA, will beselected using Bank's procedures.

(c) Project monitoring ad coordination will bs the responsibility of the Steering Commnttee.

(d) The President of the Steering Committes wivI b. responsible for coordinng arrangements for IDA supervisionmissions, and for providing information required by missions.

(e) Project review meeting with the participation of the project agencies will be held twice a year normally duringIDA supervision mission. The meetings will be chaired by tie President of the Steering Committee.

(f) Mission briefing meetings will be held on ardval, and wrp-up meetings will normally be chaired by thePresident of the Steering Committee.

Annex 16-67- Page 2 of 2

0IDA-Sumiervisin landt mnto Kgv Activities

3. The followmg assumes that the project wiUl become effective on or about November 1991.

Approximate Expected Skill Staff InputDates Activity Requirements (staff-weeks)

12/91 Project Start-up mission Engineer Mission 5.0Financid analyst Headquarters 4.0Community Dvt. Expert

05/92 Review of implementation Engineer Mission 5.0of organiz,tional arran- Financial analyst Headquarters 4.0gements, selection of Community Dvt. Expertconsultants and procure-ment malters.

11/92 Assist in preparation of Engineer Mission 6.0truining program, annual Training specialist Headquarters 4.0work program; review of Financial analyststudies; visit in the Community Dvt. Expertfield.

5/93 Review progress in works Engineer Mission 4.0studies, training, sensi- Financial aralyst Headquarters 4.0tization program, annual Community Dvt. Expertaudit; visit in the field

11/93 Review progress in works Engineer Mission 4.0stdies and training; As- Financial analyst Headquarters 4.0sist in preparation of TrAining Specialistwork plan and budget; Community Dvt. Expertvisit in the field

Years 94, Same pattem as for S and Engineer Mission 4x6.095, 96 11/93. Two supervision Financial analyst Headquarters 4x6.0and 97 mission per year, including

one at the end of 1997 toprepare PCR. Mid-termreview to be held byDecember 1994

Annex 17-68- Page 1 of 2

WATER SUfLQY SECT MOJECI

PFgres Repordng Requiremen

hmiect rmg RMd

1. Tho Borrower wiUl prepare quarterly and annual progress repos to be submitted to the Association.MIh quartrly report will be submitted not later than one month after the end of ech reporting quarter and theannual report no later than March 31 of the following year. Io annual report will include a synthesis of thequarterly reports and a forecast of activities and expenditures for the following year.

2. hne progress reports shal contin the information described below:

(a) the physical progress up to mni during the reporting period, by region and zone, including:

(O) main activities programmed, monitored and inplemonted: Water systems construction (lengthof pipes completed, number of stmmdpipes and house connections), protected spings (number);

(ià) status of contract award, reference and amount of contract, dates of approval, effectiveness andcompletion, amount invoiced cumulated during review period and dates of actual payments,explanation for any delays, amount of updatud forecast final payments versus initial forecast.

(iii) costs of each type of work;(iv) training and sensitizating indicators such as staff being trained, length of training; program of

taining; level of perception of witer fee;(y) statua of studies;(vi) other key information winch is not provided by tie quantitative indicators;

(b) the estimates of physical progrems amd paymemts to be made during the next quarter,

(c) progies on procuremnt of goods, matrials, equipmont and services (status of procedure, contracts,implementation rates of contracts, status of invoices and payments);

(d) problems with procurement of civil works, information on difficulties encountered and unforeseen eventswhich bave a bearing on the implementation of the program and solutions proposed;

(e) explanation as to deviations from the targets set mnd implementation schedule and description of thecorrecive measures which have been taken or are being prpared;

(f) expected changes in the completion date of the project;

(g) information on key staff changes in PAEMR, consultants or contractors;

(h) fncial infonmation on budget execution; and

(i) financial information on each project component indicating the original estimated cost, the revised comtif appopiate, the actual expenditure, the planned expenditures, and thoe ctual and planned withdrawalsrom the Credit Account;

3. lbo Bonower will prepare a Project Completion Report (PCR) to be submitted to the Association notlater m six menhts aler tie closing date.

Annex 1 7-69- Page 2 of 2

4. lie puimy objective of the PCR is to reinfoce tho self evluation cpcity by th. Bon>wer mmd tduAocito' opeamg dqatmmts Mmd to facilitate dissminaton of leous lemed trough the proect Mu PCRwill exann Md asse:

(a) ts perfac by the Bomnwer d the Association of duir respcve obligations under tie CreditAgreoment end whedtr tbo Associaon could have beem mmoe hepful;

(b) the resits thut ca b. expoec fiom the project, as compaed with expectuions ut isal and whedterthe origind oxpoctions woeo reslisui; Mmd,

(c) wjethr in retrpect the poeOCt ws worth doing or coud have bem doue bte.

5. For thoso compo_mts of tie. poject for which * rate of teb wus eeiated dung praisa, th. PCRuhald cotai av mvid estimoat of ti rate of retur of the projet analyze the reomus for physical or .conomicdevations. However, tdm revis.d rate of retuir cacuio ould bc a smiple s possible and should absorb onlya minor portion of tdi tim. devot.d to th. prepton of the PCR. Rolevat infomation wpporting this analyis

odud b. included as an snnex.

6. Mmo basic documents to b. rtfernd to ae: credit applicaton; coansltants' reports; sbff appraisl report(SAR); Credit Agroemmt documet and supplemetay letters; upersion repo; qumrt.rly and mnual progressrepori; a files; end miscollneous evu luaion repots.

Annex 18

-70-

WATEBR SOM SECTOR ERO^C

Sdeted Do s and Data Avallable in the Project File

1 Decree No 100/13 of Mamh 11, 1986 (portant classification des centres urbains).

2. Docree No 10/226 of Decemer 11, 1989 (potant crMtion et organisaion de la Commission Nationalede l'Eau et de l'Energio).

3. Docreo No 100/093 of June 20, 1990 (portant organisation et foctionnemet te la Direction Géndéerede l'Hydaulique et des Energies Rurales.

4. Document prépartoire de deuxième Atelier National - D6cnie Internationale de l'Eau Potable et deA'inissmet (SHER, Mai 1988)

5. Etud de factibilité de 40 adductions en milieu rural (SOGREAH -Io Phase, Septembre 1987, 2o Phase,Decembre 1988).

6. Etude Instiutionnelle et Tarifaire du Secteur Eau Potable et Assunissemt ( SOGREAH, Contrat01/85, Financement FAD, Rapport Final - 7 volumes)

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